International Financial Markets
Quantitative easing (QE) is a non-traditional monetary policy tool used by central banks to stimulate the economy when standard monetary policy becomes ineffective, typically during periods of low inflation and economic stagnation. It involves the large-scale purchase of government securities and other financial assets to increase the money supply, lower interest rates, and encourage lending and investment. By expanding the central bank's balance sheet, QE aims to boost economic activity, which can have far-reaching effects on financial markets, exchange rates, and international trade.
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