Definition from Wiktionary, the free dictionary
- (economics) A monetary policy in which the central bank increases the money supply in the banking system, as by purchasing bonds from banks.
1999 September 18, “ANALYSIS: Professor Summers teaching Japan a Lesson”, Asia Times:
- Summers believes that quantitative easing (printing a lot more yen and getting them circulated) is the most effective way of doing that.
- 2012, The Economist, Jul 14th 2012 issue, Quantitative easing: QE, or not QE?
- In times of severe economic distress, however, rates may fall to zero. Cue QE. When the Bank of Japan (BoJ) pioneered QE in 2001, its goal was to buy enough securities to create a desired quantity of reserves (hence, “quantitative easing”). Its actions, it hoped, would raise asset prices and end deflation.
monetary policy where the central bank creates money electronically
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