Quantitative Easing (QE)

Quantitative Easing (QE) is a monetary policy tool used by central banks to stimulate the economy. It involves purchasing government bonds and other securities to increase the money supply. By injecting liquidity into the financial system, QE aims to lower interest rates and encourage lending and investment. This, in turn, can boost economic activity during periods of low growth or recession. While effective in the short term, QE can lead to inflation and asset bubbles if overused. Understanding QE is crucial for analyzing central bank strategies and their impact on both crypto and fiat markets.