In November 2020, the Bank of England's Monetary Policy Committee voted to expand its asset purchase programme (quantitative easing) by £150 billion, bringing the total target stock of UK government bond purchases to £875 billion. This measure was designed to support the economy through a severe recession and ensure that CPI inflation returned to its symmetric target of 2.0%.
Evaluate the effectiveness of quantitative easing (QE) as a monetary policy instrument during a severe recession.
