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What is Quantitative Easing?

Quantitative easing is a form of monetary policy pursued by central banks that increases the monetary base via the outright purchase of financial assets, typically with the aim of stimulating the economy. Such policies often result in an expanded central bank balance sheet, as the money to fund such purchases is literally created from nothing.

 

Quantitative easing is money created out of thin air, Portfolio manager Axel Merk tells Yahoo! Finance