QE (Quantitative Easing)

Quantitative Easing (QE) is a monetary policy used by central banks to stimulate the economy when standard methods, like lowering interest rates, are ineffective. It involves the central bank purchasing government bonds and other financial assets to increase the money supply. This injects liquidity into the financial system, encouraging lending and investment, which can help boost economic activity. By raising asset prices, QE also aims to lower interest rates for consumers and businesses, making it cheaper to borrow money and spend, ultimately supporting economic growth and helping to prevent deflation.