Sentences with phrase «easing increases the money supply»

Quantitative easing increases the money supply by flooding financial institutions with capital, in an effort to promote increased lending and liquidity.

Not exact matches

Its economy suffering, the government implemented a quantitative easing program to increase the supply of money and stimulate the economy.

In recent years, the monetary easing policy has suppressed interest rates and increased the money supply in an effort to promote increased lending and liquidity.

Quantitative Easing (QE): A government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market.

The effect of quantitative easing is to raise the price of securities, therefore lowering their yields, as well as to increase total money supply.

After lowering short term interest rates to near zero in 2008, the Federal Reserve said at its March meeting that it would buy up to $ 300 billion in longer - term Treasury securities over six months as part of its efforts to increase the money supply and ease the credit crunch of the past two years.

However, also because of quantitive easing measures, which is when a central bank buys securities from the government or market to lower interest rates, increasing the money supply.

Obama's Quantitative Easing has massively increased the money supply (inflated the currency), but it is only now just beginning to cause a rise in prices.