Quantitative Easing

	Definition of 'Quantitative Easing' A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market. Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.
	Investopedia explains 'Quantitative Easing' Central banks tend to use quantitative easing when interest rates have already been lowered to near 0% levels and have failed to produce the desired effect. The major risk of quantitative easing is that, although more money is floating around, there is still a fixed amount of goods for sale. This will eventually lead to higher prices or inflation.
	Related Video for 'Quantitative Easing'

Related Definitions

Quantitative Easing: What's In A Name?

This controversial monetary policy has been used by some of the world's most powerful economies. But does it work?
What Are Central Banks?

They print money, they control inflation, and much, much more. All you need to know about central banks is here.
How The U.S. Government Formulates Monetary Policy

Learn about the tools the Fed uses to influence interest rates and general economic conditions.
The Importance Of Inflation And GDP

Learn the underlying theories behind these concepts and what they can mean for your portfolio.
Get To Know The Major Central Banks

The policies of these banks affect the currency market like nothing else. See what makes them tick.
Should You Invest Your Entire Portfolio In Stocks?

It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
The Uses And Limits Of Volatility

Check out how the assumptions of theoretical risk models compare to actual market performance.
Risk Tolerance Only Tells Half The Story

Just because you're willing to accept a risk, doesn't mean you always should.
5 Tips For Diversifying Your Portfolio

A diversified portfolio will protect you in a tough market. Get some solid tips here!
Invest Like A Pro

By following the strategies of the pros, even a beginner can learn to invest like an expert.

Why Americans Think Bush Is To Blame For The Economy	The Complete Guide To Calculating Your Net Worth		Top Investment Trends For 2013	5 Viable Career Options In 2013
	How Do Internet Browsers Make Money?	Commodities Of The Future	Trending Stocks And The January Effect