Quantitative easing

Monetary policy.

(QE).

Quantitative easing is 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
• Asset purchase programme
• Balance sheet reduction policy
• Cash in the new post-crisis world
• Central bank
• Fiscal policy
• Helicopter money
• Monetary policy
• Money supply
• POMO
• QE2

Other links

[www.bankofengland.co.uk/monetary-policy/quantitative-easing: What is quantitative easing, Bank of England]