Quantitative Easing (QE)
An unconventional monetary policy where a central bank purchases long-term securities to inject cash into the economy.
Detailed Definition
Quantitative Easing occurs when a central bank (such as the US Federal Reserve) creates central bank reserves to buy massive tranches of government bonds and mortgage-backed securities. This expands the money supply, suppresses long-term interest rates, and encourages lending, often devaluing fiat and driving bullion prices higher.
Have questions about Quantitative Easing (QE)?
Ask our zero-LLM database query engine for historical data, conversions, or impact on Pakistan markets.
Related in Macroeconomics
Hyperinflation
Extremely rapid, runaway inflation typically exceeding 50% per month, completely eroding confidence in paper money.
Gross Domestic Product (GDP)
The total monetary value of all finished goods and services produced within a country's borders during a specific period.
State Bank of Pakistan (SBP)
The central monetary authority and central bank of Pakistan.