Quantitative easing

Quantitative easing is one strategy used by central banks to help lower interest rates and boost the economy.

Expanded Definition

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.

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Related Terms

• QE2
• Federal Reserve System, aka the Fed

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