Financial IQ

Infographic: What is Quantitative Easing?

When traditional methods used to stimulate the economy don’t work, what do governments do?

Quantitive easing, defined as “a government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market,” is often used to increase the money supply and promote lending and liquidity. Fan or foe, it’s an unconventional monetary policy used during deep recessions.

Click on “launch infographic” to explore the what, when, how, and why behind this controversial technique.