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quantitative easing

It’s when a central bank, like the US Federal Reserve, directly purchases government bonds from the market (sometimes it purchases other, similar bonds). The result is, in theory, lower interest rates for the economy: it’s cheaper for people and businesses to borrow money. They, in theory, do things like buy cars or build factories, e.g. stuff that stimulates the economy. It also physically puts cash into the economy (because the bonds are bought with cash). And that cash, in theory, gets put to work doing things – like buying cars and building factories – that boosts the economy.

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