Quantitative Easing

Definition

Quantitative easing is a monetary policy in which a central bank purchases government securities or other securities from the market in order to increase the money supply and encourage lending and investment.

Related terms

Monetary Policy: The process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.

Federal Reserve System (Fed): The central banking system of the United States, responsible for implementing monetary policy.

Inflation: The rate at which general level of prices for goods and services is rising, eroding purchasing power.