Quantitative Easing An unconventional monetary policy in which a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. Quantitative easing increases the money supply by flooding financial institutions with capital in an effort to promote increased lending and liquidity. Quantitative easing is considered when short-term interest rates are at or approaching zero, and does not involve the printing of new banknotes. Investopedia Explains: Typically, central banks target the supply of money by buying or selling government bonds. When the bank seeks to promote economic growth...
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