What is quantitative easing?
Understand the Problem
The question is asking for an explanation of quantitative easing, a monetary policy tool used by central banks to stimulate the economy by increasing the money supply.
Answer
A monetary policy where central banks buy securities to lower interest rates and increase the money supply.
Quantitative easing (QE) is a monetary policy where central banks purchase securities to lower interest rates, increase the money supply, and encourage lending to stimulate economic growth.
Answer for screen readers
Quantitative easing (QE) is a monetary policy where central banks purchase securities to lower interest rates, increase the money supply, and encourage lending to stimulate economic growth.
More Information
Quantitative easing is often used in times of economic crisis to help boost economic activity by making borrowing cheaper for consumers and businesses.
Sources
- Quantitative Easing (QE): What It Is and How It Works - Investopedia - investopedia.com
- Quantitative easing | Bank of England - bankofengland.co.uk
- What Is Quantitative Easing? - Kiplinger - kiplinger.com
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