Thursday, April 17, 2014 7:58 PM EST

Quantitative Easing

The term quantitative easing (QE) describes a monetary policy used by some central banks to increase the supply of money by increasing the excess reserves of the banking system. This policy is usually invoked when the normal methods to control the money supply have failed, i.e the bank interest rate, discount rate and/or interbank interest rate are either at, or close to, zero.

A central bank implements QE by first crediting its own account with money it creates ex nihilo ("out of nothing"). It then purchases financial assets, including government bonds, agency debt, mortgage-backed securities and corporate bonds, from banks and other financial institutions in a process referred to as open market operations.

Headlines Around the Web

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Dec 19 - MarketWatch

Markets dance to the tune of easy money

Oct 11 - Financial Times

Vodafone shareholders eagerly await deal

Aug 31 - Financial Times

Articles About Quantitative Easing

World Bank Trims China, East Asia 2014 Growth Forecasts
World Bank Trims China, East Asia 2014 Growth Forecasts

By Reuters

The World Bank trimmed its 2014 growth forecast for developing East Asia but said the region's economies were likely to see steady growth in the next couple of years, helped by a pick-up in global growth and trade. (Apr 07)

MORE TOPICS: CHINA, FEDERAL RESERVE, THAILAND, MANAGEMENT, EMERGING MARKETS, INVESTMENT

Asia Pensive before U.S. Jobs Test, Euro Nurses Losses
Asia Pensive before U.S. Jobs Test, Euro Nurses Losses

By Reuters

Asian markets were settling for a subdued session on Friday as investors counted down the hours to the U.S. jobs report, while the euro nursed a grudge after the European Central Bank opened the door to more aggressive easing, albeit not just yet. (Apr 04)

MORE TOPICS: GOLD, FEDERAL RESERVE, GERMANY, JAPAN, EUROPEAN CENTRAL BANK

Asian Shares Fall on Fed Tapering Uncertainty
Asian Shares take Step Forward, Mood Cautious

By Reuters

Asian shares took a tentative step forward on Thursday as investors remained wary after the recent selloff in emerging markets raised concerns about the global economic outlook. (Feb 06)

MORE TOPICS: FIXED-INCOME, JAPAN, RUSSIA, EUROPEAN CENTRAL BANK, SOUTH AFRICA, EMERGING MARKETS

Wall Street
Weak Jobs Growth Unlikely to Derail QE cuts - Fed Officials

By Reuters

Another cut to bond purchases appears in the offing this month despite data that showed U.S. jobs growth slowed sharply in December, two top Federal Reserve officials said on Friday. (Jan 11)

MORE TOPICS: BARACK OBAMA, FEDERAL RESERVE, UNEMPLOYMENT, MANUFACTURING, ISRAEL

Asian shares on track to log their biggest three-week gain in two years
Asian Shares Ease, Dollar Firms; Friday's US Jobs in Focus

By Reuters

Asian shares wavered on Thursday after a lacklustre performance on Wall Street overnight and ahead of a key U.S. jobs report due out the following day, while the dollar stood near a seven-week high against a basket of currencies. (Jan 09)

MORE TOPICS: GOLD, FEDERAL RESERVE, DOW JONES, BNP PARIBAS, JAPAN, EUROPEAN CENTRAL BANK

EUR/USD Forecast December 30

By Fx Instructor

Simultaneous Release at TheGeekKnows.com Learn Forex Trading and read exclusive EUR/USD Forecast and AUD/USD Forecast Reviews. Good day forex traders and readers. In the previous EUR/USD forecast we noted that the currency pair failed to conquer the resistance of 1.38. (Dec 30)

MORE TOPICS: EUROPEAN UNION

RBI Surprises by Keeping Interest Rates on Hold

By Reuters

The Reserve Bank of India (RBI) unexpectedly kept the country's policy interest rate on hold on Wednesday, despite calling current inflation too high, citing the prospect of easing retail prices and its concerns about the weak domestic economy. (Dec 18)

MORE TOPICS: FEDERAL RESERVE, RETAIL, ELECTIONS, INDIA, RBI, INVESTMENT

Britons Back Tories over Labour on Economy Despite ‘Cost of Living Crisis’

By IBTimes UK

YouGov/Sun poll finds majority think they’d be worse off or no better under Labour. (Dec 14)

MORE TOPICS: MANUFACTURING, GDP, MORTGAGE, INVESTMENT

UBS Bullish on Equities and Credit in 2014

By IBTimes UK

UBS Wealth Management investment chief gives positive outlook for equities and high yield credit in 2014. (Dec 12)

MORE TOPICS: PORTUGAL, GERMANY, EUROPEAN CENTRAL BANK, MANAGEMENT, INVESTMENT, GOLD

Central Banks Cling to Gold Reserves Despite Price Falls After Calamitous Gordon Brown Sell Off

By IBTimes UK

Former UK prime minister sold off UK gold when price was low and central bankers nervous over repeat error. (Dec 10)

MORE TOPICS: GOLD, FEDERAL RESERVE, GOLD PRICES, PRECIOUS METAL