Blog – McCarthy & Associates – Galway Talks, 21/01/2015

Euro notesQuestion: What is Quantitative Easing?
Answer: Quantitative Easing in simple terms is a way for a Central Bank to stimulate an economy. What happens is that they buy large holdings of Government Bonds which all banks own and the bank in turn lends that money into the real economy, thereby stimulating it.
It has been described as ‘printing money’ and in the US, when they undertook this process after the financial crisis; it came in for a lot of criticism. However, the authorities there have been proven correct in the steps that they took, as the improvement in US economic activity has been considerable as a result.

Question: I re-entered the workforce and had been unemployed for the last 2½ years. My wife was still working but our situation disimproved while I was out of work. I want to try and plan my finances for the future, what would you recommend that I do?
Answer: Now that you are in a different financial position you need to plan your immediate future, taking account of the second income. For example, if you have high borrowings then you could consider utilizing some of that income to reduce your debt. Starting a savings account, no matter how small, is essential.
Due to unemployment, a lot of people have cancelled their Medical Insurance and if this applies to you, you could restart it. Having some cover-is better than none.
Essentially my advice to you is to try and use this new income in a planned and efficient manner.