The “tapering” terminology entered into the financial lexicon on may 22, when us federal reserve chairman ben bernanke stated in testimony before congress that that fed may taper, or reduce, the size of its bond-buying program known as quantitative easing (qe.
Today the european central bank (ecb) launches its long-awaited programme of quantitative easing (or qe), adding lots of public debt to the private kind it has already been buying. Quantitative easing (qe)—large-scale purchases of assets by central banks—led to a large increase in the federal reserve’s balance sheet during the global financial crisis (2007-2008) and in the long recovery from the 2008-2009 recession. The federal reserve's approach to supporting credit markets is conceptually distinct from quantitative easing (qe), the policy approach used by the bank of japan from 2001 to 2006 our approach--which could be described as credit easing--resembles quantitative easing in one respect: it involves an expansion of the central bank's balance sheet.
The bond-buying program, called quantitative easing or qe, had been controversial since its start in 2009, as had the fed’s decision in 2013 to gradually reduce the monthly economic boost, a plan that became known as the taper.
Quantitative easing is a monetary policy in which a central bank purchases private sector financial assets to lower interest rates and increase the money supply. “the downside of quantitative easing,”by daniel l thornton, federal reserve bank of st louis economic synopses, no 34, 2010 this essay analyzes the potential dangers if banks lend or invest their current excess reserves and increase the money supply.
The federal reserve has officially announced an end to its quantitative easing bond-buying program, but economists are split over whether the central bank’s decision will help or hinder post-recession recovery.
Short rates approaching the zero lower bound in late 2008/early 2009, the federal reserve, the bank of japan (boj), the bank of england (boe), and the european central bank (ecb) began to pursue less conventional monetary policies—including forms of quantitative easing (qe)— to stimulate economic growth.