What is quantitative easing?
Understand the Problem
The question is asking for an explanation of quantitative easing, which is a monetary policy used by central banks to stimulate the economy by increasing the money supply. This typically involves the central bank purchasing government securities or other financial assets to lower interest rates and encourage lending and investment.
Answer
Quantitative easing is a monetary policy where central banks buy securities to lower interest rates and increase money supply.
Quantitative easing (QE) is a monetary policy where central banks purchase securities to reduce interest rates and increase the money supply, encouraging lending and spending.
Answer for screen readers
Quantitative easing (QE) is a monetary policy where central banks purchase securities to reduce interest rates and increase the money supply, encouraging lending and spending.
More Information
Quantitative easing can help stabilize economies during financial downturns by making borrowing cheaper and encouraging spending, but it can also lead to inflation if too much money flows into the economy without a corresponding increase in goods and services.
Sources
- Quantitative Easing - Forbes - forbes.com
- Quantitative Easing (QE): What It Is and How It Works - Investopedia - investopedia.com
- Quantitative easing - Wikipedia - en.wikipedia.org
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