Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: quantitative easing
Learning Objective/s:
  • Describe the purpose and conditions for using quantitative easing.
  • Explain the mechanics of QE and its transmission channels.
  • Analyse the effects of QE on the monetary base, money supply, and macroeconomic variables.
  • Evaluate the advantages, risks, and circumstances under which QE is effective.
Materials Needed:
  • Projector and screen
  • PowerPoint slides summarizing QE concepts
  • Handout with QE mechanics diagram
  • Whiteboard and markers
  • Calculator (optional for multiplier calculations)
 Introduction:
Begin with a brief news clip showing central‑bank announcements of QE during the COVID‑19 crisis to capture interest. Ask students to recall how interest‑rate cuts work and why they may become ineffective at the zero lower bound. Explain that today they will unpack QE, its transmission mechanisms, and evaluate its impact on the economy.
Lesson Structure:
  1. Do‑now (5’) – quick quiz on conventional monetary policy and the liquidity trap; teacher checks answers.
  2. Mini‑lecture (15’) – present purpose, mechanics, and transmission channels of QE using slides and the reserve‑flow diagram.
  3. Guided analysis (10’) – work through the simple money‑multiplier equation, calculate change in money supply after a hypothetical QE purchase.
  4. Case study (15’) – groups examine the UK QE programme table, identify trends, discuss advantages and risks; each group shares a key insight.
  5. Formative check (5’) – exit ticket: students write one condition under which QE is likely to be effective and one major risk.
Conclusion:
Summarise how QE expands the monetary base and can stimulate demand when traditional tools fail, while noting its possible side‑effects. Collect exit tickets and assign a short reflective paragraph on whether QE should be used in future crises.