Quantitative Easing (QE) is an expansion of the open market operations of a country’s central bank that is a monetary policy by a central bank buys predetermined amounts of government bonds or other financial assets in order to add money directly into the economy. (Opposite of the Quantitative Tightening)
Reference Definition by Investopedia: Quantitative easing (QE) is a form of unconventional monetary policy in which a central bank purchases longer-term securities from the open market in order to increase the money supply and encourage lending and investment. Buying these securities adds new money to the economy, and also serves to lower interest rates by bidding up fixed-income securities. It also greatly expands the central bank’s balance sheet.
Related Definitions in the Project: The Commercial Definitions
