Definition:
Quantitative Easing (QE)
Back to Finance Glossary | Previous Page
Quantitative easing is an unusual instrument of monetary policy used by some central banks to stimulate the economy.The central bank creates money, then uses it to buy government bonds and other financial assets.
These purchases increase the money supply and shore up the excess reserves of the banking system.
Another effect of quantitative easing is that it raises the prices of the financial assets bought which lowers yields.
Latest Articles Related to Quantitative Easing (QE)
January 13, 2011 | Carl Smith
Read: 68 times
Back to Finance Glossary | Previous Page
This web site is intended only to convey information. It is not to be construed as an investment guide or as an offer or solicitation of an offer to buy or sell any securities. The author has taken all usual and reasonable precautions to determine that the information contained in this website has been obtained from sources believed to be reliable.
