Quantitative easing (QE) is a robust monetary policy tool used by central banks to stimulate the economy when interest rate cuts are no longer effective. It works by increasing the money supply through large-scale purchases of financial assets such as government bonds. These actions reduce long-term interest rates, improve liquidity, and encourage lending, investment, and consumer spending. QE has played a central role in modern economic recovery efforts, particularly during the 2008 global financial crisis and the COVID-19 pandemic. It affects many parts of the financial system, including bond markets, credit ... (full story)