Quantitative Easing (QE)
Definition
A monetary policy tool where central banks purchase large quantities of financial assets (government bonds, mortgage securities) to inject money into the economy, lower long-term rates, and stimulate growth.
Example
The Fed's QE programs during 2008 and 2020 expanded its balance sheet by trillions, suppressing yields and weakening the dollar.
Related Terms
Frequently Asked Question
What is Quantitative Easing (QE)?
QE is when central banks create money to buy assets, expanding their balance sheet and injecting liquidity. QE suppresses interest rates, weakens the currency, and inflates asset prices.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.