The Hutchins Center Explains: Quantitative Easing | Brookings
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Quantitative easing refers to large-scale asset purchases conducted by a central bank in order to put downward pressure on market interest rates central bank changes the relative supply of assets available to investors the prices of those assets—stocks or houses, for instance—tend to rise, helping t
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- Quantitative easing refers to large-scale asset purchases conducted by a central bank in order to put downward pressure on market interest rates
- central bank changes the relative supply of assets available to investors
- the prices of those assets—stocks or houses, for instance—tend to rise, helping to stimulate business and consumer spending
- The second way QE helps to lower market interest rates is by signaling that the central bank plans to keep policy rates low for a long time
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