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
- Hold on Tight, the Dow is Going to Have a Huge Week
- Is Molycorp's Story Coming to an End?
- For Mortgage REITs like Annaly Capital Management and American Capital Agency Corp, Short-Term Inter
- Are Annaly Capital Management, Inc. and American Capital Agency Corp. Relieved or Scared of the Tape
- Why the Dow Jones Industrials Rose Today While Other Markets Fell
- Mortgage Rates Could Stay Low Until 2016