25 billion dollars from the FED to solve the American banking crisis.

Some think it's still a sort of printing press, for others it's quantitative easing.

In fact, printing money and quantitative easing are two distinct economic concepts, but they are often confused.

Printing money is a method used by central banks to create money. It consists of printing new banknotes to increase the quantity of money in circulation. This method can be used to finance public expenditure or to stimulate the economy.

Quantitative easing (QE) is a monetary policy that involves the central bank buying large-scale financial assets in the markets, such as government bonds or mortgage-backed securities. The objective of QE is to stimulate the economy by injecting money into the financial system and reducing interest rates.

These two concepts have the same objective: to stimulate the economy.

The main differences between the two methods are:

Money printing is the creation of money out of thin air, whereas QE involves the purchase of existing financial assets in the markets.

Money printing can be used to finance government spending or to stimulate the economy, while QE is mainly used to stimulate the economy by lowering interest rates and increasing the amount of liquidity in the financial system.

Money printing can lead to inflation if used excessively, while QE can also have an inflationary effect, but it depends on the economy and macroeconomic environment.

On March 12 the Federal Reserve announced that it would fund a support program for banks and other depository institutions. This funding program will make $25 billion available to eligible organizations.

You must therefore be eligible to benefit from the financing program.

The funds will serve as a liquidity guarantee for the banks which will have to cover the needs of customers in this period of trouble.

The use of the funds was specified in the statement. They will be used to provide loans for up to one year to banks, credit unions, savings associations and other depository institutions deemed eligible.

To obtain the funds, companies will have to deposit pledges beforehand. The Fed has clarified that the pledges could be US Treasuries, agency debt and mortgage-backed securities or other qualifying assets. Regarding the value of the pledges, the assets will be valued at the price at which they were issued.

So I have two questions for you:

- Is this quantitative easing or the use of printing money?

- Do we still have to prepare for further increases in the inflation rate in the months to come?