What is quantitative easing?
Understand the Problem
The question is asking for an explanation of quantitative easing, which is a monetary policy tool used by central banks to stimulate the economy by increasing the money supply and lowering interest rates. This typically involves the purchase of government securities or other financial assets to inject liquidity into the economy.
Answer
Quantitative easing is a monetary policy where central banks purchase financial assets to lower interest rates and increase the money supply.
Quantitative easing is a monetary policy where central banks purchase financial assets to lower interest rates and increase the money supply.
Answer for screen readers
Quantitative easing is a monetary policy where central banks purchase financial assets to lower interest rates and increase the money supply.
More Information
Quantitative easing is used as an economic stimulus tool, especially during times of low inflation and economic stagnation.
Sources
- Quantitative easing (QE) - Wikipedia - en.wikipedia.org
- Quantitative Easing: What It Is and How It Works - Investopedia - investopedia.com
- Quantitative easing | Bank of England - bankofengland.co.uk
