Public Policy and Business
Quantitative easing (QE) is an unconventional monetary policy tool used by central banks to stimulate the economy by increasing the money supply through the purchase of government and other financial assets. This approach aims to lower interest rates, encourage lending and investment, and ultimately boost economic activity, especially during periods of economic downturn or when traditional monetary policy tools have become ineffective. QE also has implications for exchange rates, as it can lead to depreciation of the currency, impacting international trade and capital flows.
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