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# Evaluate the effectiveness of quantitative easing during ‘a significant recession’
- URL: https://www.a-level-economics-tutor.com/evaluate-the-effectiveness-of-quantitative-easing-during-a-significant-recession/
- Published: 2026-05-12T14:00:09.000Z
- Updated: 2026-05-12T14:00:09.000Z
- Author: Jaisul Naik
- Tags: Edexcel 25 Mark Question

## Edexcel A-Level Economics 25 Mark Question

The European Central Bank introduced a new round of quantitative easing (QE) in March 2020, purchasing up to €750 billion of assets. The objective of this QE was to reduce the serious risks to the effectiveness of monetary policy resulting from a significant recession. The European Central Bank’s target for inflation remains at ‘below but close to 2%’. **Evaluate the effectiveness of quantitative easing during ‘a significant recession’.** (June 2021)

**Plan**

- **Paragraph 1**
  - **Argument: QE is effective because it can stimulate economic growth**
  - **Diagram: right shift in AD**
  - **Evaluation: effectiveness can depend on the size of the multiplier**
- **Paragraph 2**
  - **Argument: QE is especially useful due to the limitations of traditional monetary policy**
  - **Diagram: money supply diagram (optional)**
  - **Evaluation: business confidence**

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