Business

What Is Quantitative Easing? Advantages and Disadvantages of QE

Written by MasterClass

Last updated: Aug 19, 2021 • 3 min read

Quantitative easing is a fiscal policy that a country’s central bank will turn to in order to stimulate the economy in the midst of an economic crisis. A central bank will make longer-term asset purchases on the open market to increase the supply of money in circulation. However, quantitative easing is a complex macroeconomic policy that has a series of potential advantages and disadvantages.