Quantitative easing is one strategy used by central banks to help lower interest rates and boost the economy.
Many Americans became familiar with the term quantitative easing in late 2010, when the nickname "QE2" came into play to describe a second round of quantitative easing by the Fed. This strategy involved the Fed's buying $600 billion worth of Treasuries as a way to put more money into the economy.
Critics argue this amounts to printing money and could spur inflation.
Related Fool Articles
- Bernanke's Delusions
- Quantitative Easing: Knowing When to Say When
- Why China Hates QE2
- Harry Potter Understands QE2
Recent Mentions on Fool.com
- Market's Manic Monday; Or, How I Learned to Stop Worrying and Love Long-Term Investing
- The Greeks' Austerity Problem
- 7 Ways the Federal Reserve Affects You and Your Money
- Oil's "Peak Demand" Theory is Still a Long Ways Away
- Stocks: Are High-Dividend Shares "On the Bubble"?
- The Best Blue Chips to Own Forever