Quantitative easing (QE) is a monetary policy instrument used by central banks to stimulate the economy when standard monetary policy becomes ineffective. Central banks implement QE by purchasing predetermined amounts of government bonds or other financial assets to inject liquidity directly into the economy.
The Federal Reserve implemented multiple rounds of QE in response to the 2008 financial crisis and the COVID-19 pandemic. These measures aimed to stabilize financial markets, lower long-term interest rates, and stimulate economic growth.
The European Central Bank (ECB) launched QE in 2015 to combat deflationary risks and stimulate growth in the Eurozone. The program involved purchasing €60 billion worth of bonds monthly.
The Bank of Japan (BoJ) implemented aggressive QE measures starting in 2001 and later in 2013 as part of "Abenomics." These efforts aimed to depreciate the yen and make Japanese exports more competitive.
The Bank of England (BoE) implemented QE in response to the 2008 financial crisis and the COVID-19 pandemic. The BoE purchased government bonds and other securities to inject liquidity into the economy.
Other countries such as Switzerland, Sweden, and India have also implemented QE-like measures to stabilize their economies and financial markets.
For more detailed information on global QE policies and their impacts, visit the following websites: