Plain-English definitions, reviewed by an independent investor
Quantitative Easing
QE is a central bank buying bonds to push down long rates and add cash to the system.
QE is a central bank buying bonds to push down long rates and add cash to the system.
(Large-scale asset purchases to ease policy)
Why it matters
It is the emergency lever when rates are already near zero.
Common confusion
It can lift asset prices and risk-taking, but risks inflation if overdone.
Frequently Asked Questions
QE vs rate cuts?
Cuts move the policy rate; QE acts when rates are already at the floor.
Who pays for QE?
No direct taxpayer cost, but it expands the central bank’s balance sheet.