cointelegraph
2023-09-11
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Quantitative easing entails the central bank acquiring financial assets off the market, such as government bonds. When interest rates are low and conventional measures are less successful, central banks use the monetary policy tool known as quantitative easing (QE) to boost the economy. The central bank initiates QE by acquiring financial assets from business banks, financial institutions and, occasionally, the open market. Government bonds are the most commonly bought assets, but central banks can also purchase corporate bonds or mortgage-backed securities.
