Quantitative easing

(QE).

A form of monetary policy used to stimulate an economy where interest rates are either at, or close to, zero.

It involves a central bank buying financial assets, and its effect is to increase the money supply.

The financial assets bought are usually central government debt.

See also

• Asset purchase facility
• Central bank
• Helicopter money
• Monetary policy
• Money supply
• QE2
• POMO
• Cash in the new post-crisis world

Other links

Everything you ever wanted to know about quantitative easing, S&P Capital IQ