Quantitative Easing


Quantitative Easing
A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.

Central banks tend to use quantitative easing when interest rates have already been lowered to near 0% levels and have failed to produce the desired effect. The major risk of quantitative easing is that, although more money is floating around, there is still a fixed amount of goods for sale. This will eventually lead to higher prices or inflation.


Investment dictionary. . 2012.

Look at other dictionaries:

  • quantitative easing — UK US noun [U] (ABBREVIATION QE) FINANCE, ECONOMICS, BANKING ► the act by a country s central bank of increasing the money supply (= amount of money in the economy) at a time when interest rates are very low, as a way of increasing economic… …   Financial and business terms

  • Quantitative easing — Part of a series on Government …   Wikipedia

  • quantitative easing — /kwɒntəˌteɪtɪv ˈizɪŋ/ (say kwontuh.taytiv eezing) noun Finance 1. the increasing of the supply of money from a central bank in order to stimulate a failing economy. 2. the monetary policy giving rise to this increase. Abbrev.: QE {quantitative… …   Australian English dictionary

  • quantitative easing — noun An unconventional monetary policy where the central bank creates money electronically and uses it to purchase bonds from private banks …   Wiktionary

  • quantitative easing — UK [ˌkwɒntɪtətɪvˈiːzɪŋ] / US [ˌkwɑntəteɪtɪvˈiːzɪŋ] noun [uncountable] economics a process of increasing the amount of money in a country s economy, usually in an attempt to improve the economy and prevent a situation in which the banks are not… …   English dictionary

  • Quantitative Easing 2 – QE2 — The second round of the Federal Reserve s monetary policy used to stimulate the U.S. economy following the recession that began in 2007/08. QE2 was initiated in the fourth quarter of 2010 in order to jump start the sluggish economic recovery. The …   Investment dictionary

  • Quantitative Lockerung — Quantitative Lockerung[1], englisch quantitative easing, ist die Geldpolitik einer Zentralbank, die zum Einsatz kommt, wenn der Zinssatz der Zentralbank bereits auf null oder fast auf null gesetzt wurde und weiterhin eine expansive Geldpolitik… …   Deutsch Wikipedia

  • easing — ease ease [iːz] verb 1. [intransitive, transitive] if limits, rules, restrictions etc are eased, or someone eases them, they become less strict: • India is easing rules for joint ventures with foreign concerns. 2. [intransitive, transitive] if… …   Financial and business terms

  • Credit Easing — Policy tools used by central banks to make credit more readily available in the event of a financial crisis, such as the one experienced in 2007 2008. In the United States, the policy tools, as described by Federal Reserve Chairman Ben Bernanke… …   Investment dictionary

  • QE — quantitative easing …   Australian English dictionary


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