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What is the point of sterilized QE?


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 josh 
Georgia, US
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Since the point of QE is to inject liquidity into the market, what is the point of sterilized QE? It injects liquidity by purchases, and then removes that liquidity by a number of ways, including borrowing the same money it just used to purchase with and offering a rate of return on that, selling Tbills to banks who purchase them with the same money, and so on.

So, I buy something from you so you can have money, but then I borrow that same money back from you. I don't get it. Please enlighten me someone...


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Last Updated on March 14, 2012


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