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qualitative easing will create havoc between the three countries and affect their international trade. Newly printed money can be used by governments and individuals to import new goods and services from Canada into England. Overtime, the value of the importer’s currency (British Pound) decreases which then discourages exports and imports and thus having a significant effect on how investors in Canada, thus affecting the foreign direct investments.
Lastly, this is a threat to the Canadian Dollar as they will see the act of qualitative easing as a currency manipulation. They will feel that this practice is a clear indication the UK government is unable to honor its debt by generating real wealth and growth. This will force caranda and other countries to be weary about leading the UK more money.