It is a bigger step to engage in money-financed asset purchases by the central bank than it is to cut interest rates. There are, however, circumstances where QE could help. The international experience is that in stressed market conditions, the central bank can help stabilise the situation by buying government securities.
Improve Risk Prevention System for a More Liberalized Financial Sector Financial sector opening up does not by itself lead to financial risks, but may add to the complexity of financial risk prevention. Therefore, efforts should be made to improve the financial risk prevention system to catch up with the progress of openness.