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. This typically involves the central bank purchasing financial assets to increase money supply and lower interest rates.
Answer
A monetary policy where central banks buy assets to increase money supply and lower interest rates.
Quantitative easing is a monetary policy where central banks purchase financial assets like government securities to increase the money supply and lower interest rates, encouraging more lending and spending.
Answer for screen readers
Quantitative easing is a monetary policy where central banks purchase financial assets like government securities to increase the money supply and lower interest rates, encouraging more lending and spending.
More Information
Central banks, like the Federal Reserve, use quantitative easing to inject liquidity into the economy, aiming to stimulate economic activity, particularly during periods of low inflation and high unemployment.
Sources
- Quantitative Easing (QE): What It Is and How It Works - Investopedia - investopedia.com
- Quantitative easing - Wikipedia - en.wikipedia.org
- What Is Quantitative Easing? - Kiplinger - kiplinger.com
