Quantitative Easing

Quantitative easing, often referred to as QE, is one way in which the central bank can implement monetary policy in order to stimulate the economy. The central bank buys large quantities of financial assets, typically bonds (without sterilizing or offsetting these purchases) in an aim to lower interest rates. From 2009 to 2014, the Federal Reserve attempted to support economic growth by undertaking a quantitative easing program in which they bought over $3 trillion in government bonds and mortgage backed securities.