Tue 13 Dec, 2011 10:56 am
"Altering the low- rate commitment would give central bankers the flexibility to adjust monetary policy without resorting to a third round of large-scale bond purchases, also known as quantitative easing."
Just read this in a news article. Can someone explain this to me? I thought that the QEs were designed to promote liquidity, whereas raising interest rates would theoretically stifle liquidity..