quantitative easing

noun

finance
: a set of government policies that may be implemented by a central bank to increase the money supply in the economy
The Fed has already done plenty with its unique stimulus program of quantitative easing, or QE, the $85 billion-a-month purchase of bonds and mortgage-backed assets that started pumping cash into the system in 2008.Rana Foroohar
Speculation is increasing that in an effort to stimulate the sluggish economy, the central bank will soon announce additional quantitative easing, the strategy of buying long-term assets like Treasury bonds to lower long-term interest rates.Christine Hauser
Since 2000, the Bank of Japan has progressively increased the intensity of its quantitative easing programs in response to stagnant growth and failures in its banking system.Blaine Luetkemeyer
abbreviation QE

Examples of quantitative easing in a Sentence

Recent Examples on the Web Monetary Policy Douglas Carr: The Fed responded to the pandemic crisis initially with $3 trillion in securities purchases, among other measures, with an additional $2 trillion of quantitative easing (money-supply growth) into 2022. Andrew Stuttaford, National Review, 9 Dec. 2023 But whether officials feel ready to exit quantitative easing may hinge on a much smaller figure: $71 billion. William Pesek, Forbes, 30 Nov. 2023 Major central banks including the Federal Reserve and European Central Bank bought hundreds of billions of dollars of bonds under quantitative easing (QE) programs during the pandemic and guided investors on the likely future path of interest rates to give their economies an extra boost. Tom Fairless, WSJ, 26 June 2023 Deutsche believes that businesses and consumers have not yet adjusted to the current higher interest-rate regime, following a decade or more with rates either negative or effectively zero, as well as near-continuous quantitative easing across the U.S. and Europe. Christiaan Hetzner, Fortune, 15 June 2023 Although there are important distinctions, many analysts equated this funding program to a new form of quantitative easing. Leeor Shimron, Forbes, 3 May 2023 Near-zero interest rates and quantitative easing encourage investors to invite risk, and if those risks turn sour, the Fed may have to provide even more easy money. Raphaële Chappe, Foreign Affairs, 13 Oct. 2020 The last 15 years have produced negative interest rates, quantitative easing, forward guidance and interest-rate price controls. The Editorial Board, WSJ, 20 Dec. 2022 The Fed fueled the fantastic deposit growth at SVB and other banks with its prolonged quantitative easing and zero interest-rate policy that caused banks to pile into longer-term, higher-yielding assets. The Editorial Board, WSJ, 28 Mar. 2023 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'quantitative easing.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1966, in the meaning defined above

Time Traveler
The first known use of quantitative easing was in 1966

Dictionary Entries Near quantitative easing

Cite this Entry

“Quantitative easing.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/quantitative%20easing. Accessed 4 Mar. 2024.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!