QE

the central bank buying assets with reserves it created

In more detail

Mass buying of bonds by a central bank. It pays for them with money it creates at the moment of purchase.

It was invented to bring down the yields on long securities when the ordinary rate has already been lowered to its limit.

Covered in the primer of chapter 8.

In the academy “QE” is not a definition but an operation: you post it yourself and watch what it does to the balance sheet.

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