quantitative easing
a central bank buying assets to inject money into the economy
In more detail
a policy in which a central bank (like the Federal Reserve) buys large amounts of government bonds and other financial assets to increase the money supply and lower interest rates, typically used when standard interest rate cuts are no longer effective during economic crises
Examples
- The government implemented quantitative easing to stimulate the economy during the financial crisis.
How to use quantitative easing
Quantitative easing is a technical economic policy term used primarily in financial, economic, and news contexts when discussing central bank interventions during recessions or crises. It is more formal and precise than its colloquial synonym 'money printing,' and refers specifically to asset purchases rather than direct cash distribution. The term became widely known during the 2008 financial crisis and subsequent pandemic-related economic downturns.
Common phrases
- implement quantitative easing
- quantitative easing measures
- quantitative easing program
- rounds of quantitative easing
- announce quantitative easing
Synonyms
monetary expansion · asset purchase program · money printing · liquidity injection
Opposites
quantitative tightening · monetary contraction
A common mistake
Learners sometimes confuse quantitative easing with simply printing money or giving money directly to citizens; in fact, it is a specific mechanism where central banks purchase financial securities to inject liquidity into the financial system.
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