Financial Markets: Regulation, Efficiency and Quantitative Easing

This report provides a comprehensive analysis of financial markets, addressing key concepts such as asymmetric information, moral hazard, and adverse selection, and the need for regulating financial markets. It differentiates between money and capital markets, highlighting their characteristics and functions. The report also explores market efficiency at different levels and the Efficient Market Hypothesis. Furthermore, it delves into quantitative easing (QE), explaining its mechanisms, effects on interest rates, stock prices, and the overall economy. The report discusses the role of central banks in implementing QE and its impact on various financial factors, offering a thorough understanding of financial market dynamics and regulatory considerations.