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Q.

Will some body explain me in simple words, what is mean by the ecnomic term "quantitave easing" ?

Tags: money, simple words, body explain
Asked by shaji, 05 Aug '11 01:03 pm
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Answers (3)

1.

Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank implements quantitative easing by purchasing financial assets from banks and other private sector businesses with new electronically created money. This action increases the excess reserves of the banks, and also raises the prices of the financial assets bought, which lowers their yield. The Bank of Japan targeted the quantity of reserves held by the banks during quantitative easing, while the US Federal Reserve emphasized that they targeted a credit easing in the business and household sectors.
Expansionary monetary policy typically involves targeting a lower short-term market interest rate by the central bank through the buying of short-term government bonds, using a combination of standing lending facilities and open market operations. However, when short-term interest rates are either at, or c ...more
Answered by venkatesaldevarajan, 05 Aug '11 01:07 pm

 
  
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2.

Hi Guys,

Quantitative easing is a government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.

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Answered by Probondins, 23 Jul '12 06:26 pm

 
  
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3.

Well you haven't got an answer so far which mean's no one know's - try google
Answered by simon waaras, 05 Aug '11 01:05 pm

 
  
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