Quantitative Easing (QE)
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
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