What does 'quantitative easing' mean?
Sample data This is a sample conversation for demonstration. Answers here were not generated by AI.Start a real chat
“The central bank expanded its quantitative easing programme, purchasing an additional $40bn in long-dated securities each month.”
The Economist — Finance
Explain this in plain English.
b
Sample answer
Quantitative easing (QE) is when a central bank creates new money and uses it to buy financial assets — usually government bonds.
In this sentence, the bank is buying $40 billion of long-term bonds every month. The goal is to:
1. Push down long-term interest rates
2. Make borrowing cheaper for businesses and households
3. Encourage spending and investment
Think of it as the bank pouring money into the financial system to keep it flowing.