quantitative easing (QE), a set of unconventional monetary policies that may be implemented by a central bank to increase the money supply in an economy. QE was primarily designed as an instrument of monetary policy. The mechanism required the Bank of England to purchase government bonds on the secondary market, financed by the creation of new central bank money. Quantitative easing is a central bank buying bonds with new money to push down long-term rates. How QE works, its effects on growth and inflation. What the Federal Reserve is up to, and how we got here.September 2012 Update: Check out my essay on how the Fed thinks QE will create jobs: . Quantitative easing (QE) is a monetary policy tool used by central banks to stimulate the economy by purchasing securities and increasing the money supply. QE is typically used when interest. The Fed's bond-buying program, dubbed quantitative easing, or QE, is designed to boost growth by keeping borrowing rates low. QE has been likened to a steroid injection, or performing-enhancing drug, and has been cited as a key driver of stock prices. Search for QE on Wikipedia. This disambiguation page lists articles associated with the title QE. If an internal link incorrectly led you here, you may wish to change the link to point directly to the intended article. A clear explainer of quantitative easing: why the Fed turns to QE when rates hit zero, how it lowers long-term rates and supports asset prices, the balance sheet expansion from $900 billion to $9 trillion, QE1 through COVID QE, and the inflation debate. Optimize your healers gear using cutting edge math and theorycrafting. Quantitative easing (QE) is a pivotal monetary policy tool employed by central banks to invigorate an economy, particularly when conventional methods, such as adjusting short-term interest rates, prove insufficient.