A monetary policy where central banks purchase government securities or other financial assets to inject liquidity into the economy and stimulate growth. By expanding the central bank's balance sheet, QE lowers long-term interest rates and encourages lending and investment.
Example
“During the 2020 COVID-19 crisis, the Federal Reserve launched massive quantitative easing, purchasing over $120 billion in bonds per month, which helped drive stock markets to new all-time highs.”