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.
- Why Germany Is the Driving Force in the EurozoneWhen you hear about how the eurozone is struggling economically, news reports often ask: What does Germany think or what is Germany doing? You may wonder why Germany is so important for the eurozone. The simple answer: Germany is the biggest economy of the 19 nations that use the euro as their currency, and that makes stalwart Germany the driving engine in the European Union.
- 9 Insights About Negative Interest Rates
- 4 Factors Influencing Today's Stock Market