quantitative-easing
/ˈkwɒn.tɪ.tə.tɪv ˈiː.zɪŋ/ IELTSAcademic
noun
A central bank policy of creating money to buy financial assets, usually government bonds. It is used to lower interest rates and support the economy when normal policy is not enough.
- The central bank used quantitative easing after the crisis.
- Quantitative easing can help businesses borrow more cheaply.
- Some people worry quantitative easing can raise inflation.
Adinary Nuance
Quantitative easing is not the same as simply cutting interest rates. A central bank uses it when rates are already very low and needs another way to support the economy. It is closer to a large-scale money policy than to ordinary borrowing help or fiscal spending.
In other languages
- Vietnamese
- nới lỏng định lượng
- Spanish
- flexibilización cuantitativa
- Chinese
- 量化宽松
- Japanese
- 量的緩和
- Korean
- 양적 완화
Etymology
The term became common in the early 2000s, especially after Japan used the policy. It combines quantitative, meaning “about amount,” with easing, meaning “making pressure less.”
Common phrases
quantitative easing policya round of quantitative easingend quantitative easinglaunch quantitative easing
Synonyms
Related words
Frequently asked questions
- Is quantitative easing the same as printing money?
- Not exactly. It is a way for a central bank to create money and buy assets, not literal paper printing.
- Is quantitative easing a formal term?
- Yes. It is a formal economic term used in news, business, and academic writing.
- What is the difference between quantitative easing and lowering interest rates?
- Lowering interest rates is the usual first step. Quantitative easing is used when rates are already very low.