Quantitative Easing
Synonyms: QE, Large-Scale Asset Purchases
Quantitative Easing (otherwise known as “large-scale asset purchases”), is a reference to an unconventional form of monetary policy whereby a central bank purchases long-term government bonds or other financial assets in large quantities in order to add money directly into the economy.
This provides the economy with a boost whilst also lowering interest rates and expanding the central bank’s balance sheet.
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