Illya Gerasymchuk
Entrepreneur / Engineer
even if it doesn't happen directly at the start - eventually QE also increases broad money, due to reduced balance sheet constraints and an increase in cash reserves, which needs to be invested ASAP. this leads to more lending and asset purchases
initially QE may only increase base money supply - as commercial banks reserve balances get credited by the Central Bank if the Central Bank purchases assets from non-bank financial institutions, then broad money increases directly as well, as deposits increase