economics

quantitative easing

A monetary policy tool where a central bank purchases government bonds and other financial assets to inject money into the economy.

Example

"The Federal Reserve used quantitative easing after the 2008 financial crisis to prevent a depression."

💡 Memory Tip

QE = the Fed EASES economic pressure by creating a QUANTITY of new money.

Etymology

Quantitative (measured in quantities) + easing (making easier) — increasing the quantity of money to ease financial conditions.

Common Misspellings

quantative easingquantitative easeingquantitative easingquantatative easing

Related Terms

federal reservemonetary policyinflationbond

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