Quantitative Easing 2 – QE2

The second round of the Federal Reserve's monetary policy used to stimulate the U.S. economy following the recession that began in 2007/08. QE2 was initiated in the fourth quarter of 2010 in order to jump-start the sluggish economic recovery. The Federal Reserve announced plans to buy $600 billion in long-term Treasuries, in addition to the reinvestment of an additional $250 billion to $300 billion in Treasuries from earlier proceeds from mortgage-backed securities. This, in theory, would push yields on Treasuries and bonds down, creating a surge in investment and consumption expenditures.

Quantitative easing was intended to stimulate an economy through a central bank's purchase of government bonds or other financial assets. Often, central banks use quantitative easing when interest rates are already zero bound, or at near 0% levels. This type of monetary policy increases the money supply and typically raises the risk of inflation. Quantitative easing is not specific to the U.S., however, and is used in a variety of forms by other major central banks.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Quantitative easing — Part of a series on Government …   Wikipedia

  • Количественное смягчение — (Quantitative easing, QE) Количественное смягчение нетрадиционная монетарная политика Содержание политики количественного смягчения, программы количественных смягчений ФРС США Содержание >>>>>>>>> …   Энциклопедия инвестора

  • Currency war — Brazilian Finance Minister Guido Mantega, who made headlines when he raised the alarm about a Currency War in September 2010. In July 20 …   Wikipedia

  • Currency War of 2009–2011 — The Currency War of 2009–2011 is an episode of Competitive devaluation which became prominent in September 2009. Competitive devaluation involves states competing with each other to achieve a relatively low valuation for their own currency, so as …   Wikipedia

  • Количественное смягчение — (англ. Quantitative easing, QE)  нетрадиционная[1][2] монетарная политика, используемая центральными банками для стимулирования национальных экономик, когда традиционные монетарные политики в связи с рядом факторов являются… …   Википедия

  • Guerre des monnaies — Une guerre des monnaies implique des pays qui se font compétition sur les marchés monétaires dans le but de parvenir à un taux de change relativement plus bas que les autres pays, cela pour favoriser leurs exportations. En affaires… …   Wikipédia en Français

  • Currency Exchange Rate Oversight Reform Act of 2011 — The Currency Exchange Rate Oversight Reform Act of 2011 (S. 1619) is an international trade bill in the 112th United States Congress that would establish US tariffs on imports from countries with undervalued currencies.[1] The bill was approved… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.