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True but Quantative Easing tends to help big firms / drive up capital costs. It's definitely a useful mechanism though.
I am not sure what other side effects it has...I can't imagine you can keep doing it all the time either.
JWestland-
Like all cool things I think it was invented in Japan to boost inflation, although hasn't really come to much and I think they have had it on and off since the late 90's. I don't know enough about economics, but couldn't QE be used in any number of ways, and really it's the Gov that decides how it's used?
Bernhard
Whilst true, we always have the option of quantitive easing, which is in essence the government selling bonds in the country, basically like releasing equity in a house, this does not have the risk of inflation as there is no new money. I do know I am slightly ignorant on these matters so happy to be corrected but as I understand it, this is a low(ish) risk way of the gov raising funds.