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Economics vocabulary · Central Banks and Interest Rates

Quantitative easing

Meaning in economics, with examples

/ˈkwɒntɪtətɪv ˈiːzɪŋ/nounCommon term

In economics, quantitative easing means: A policy in which a central bank creates new money to buy large amounts of government bonds or other assets, aiming to lower long-term interest rates.

In Turkish: miktarsal genişleme, parasal genişleme, niceliksel genişleme

How it is used

Usually shortened to QE. It was used widely after the 2008 crisis and during the pandemic by the Fed, the Bank of England, the ECB and the Bank of Japan, when policy rates were already close to zero. The reverse process is quantitative tightening (QT).

Example sentences

  1. The Bank of England launched quantitative easing in 2009 to support the economy.

  2. Critics argue that quantitative easing pushed up house and share prices.

Common collocations

  • a round of quantitative easing
  • launch quantitative easing
  • end quantitative easing
  • QE programme
  • central bankThe national institution that issues a country's currency, sets the main interest rate and works to keep prices and the financial system stable.
  • money supplyThe total amount of money circulating in an economy, including cash and bank deposits, measured with categories such as M1 and M2.
  • monetary policyThe actions a central bank takes to influence interest rates, the money supply and credit in order to control inflation and support the economy.
  • interest rateThe price of borrowing money, shown as a yearly percentage of the amount borrowed; for savers, it is the return they earn on deposits.

More terms: Central Banks and Interest Rates

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This page explains English vocabulary for learners. It is not financial advice.