A monetary policy used by central banks to stimulate the economy by increasing the money supply.
Quantitative easing (QE) is a monetary policy used by central banks to stimulate the economy.
Under QE, a central bank buys government bonds or other assets from banks and financial institutions, which injects new money into the financial system. This increase in the money supply can lead to lower interest rates and an increase in lending and spending, which can stimulate economic growth.
For market participants, QE is bullish, as the combination of increased money supply and low interest rates results in rallies across equities and cryptocurrencies.
