What is quantitative easing?
Understand the Problem
The question is asking for an explanation of quantitative easing, which is an economic policy used by central banks to stimulate the economy by increasing the money supply.
Answer
Quantitative easing is a central bank strategy to buy securities, reduce interest rates, and increase money supply.
Quantitative easing is a monetary policy strategy where central banks, like the Federal Reserve, purchase securities to reduce interest rates and increase the money supply, promoting lending to consumers and businesses.
Answer for screen readers
Quantitative easing is a monetary policy strategy where central banks, like the Federal Reserve, purchase securities to reduce interest rates and increase the money supply, promoting lending to consumers and businesses.
More Information
Quantitative easing aims to stimulate the economy by encouraging more consumer spending and business investment, but it can also lead to increased inflation if not managed carefully.
Sources
- Quantitative Easing (QE): What It Is and How It Works - Investopedia - investopedia.com
- Quantitative easing | Bank of England - bankofengland.co.uk
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