What does QE mean?

QE stands for Quantitative Easing, which is a monetary policy used by central banks to stimulate the economy. In QE, central banks purchase a large amount of financial assets, such as government bonds or securities, in order to increase the money supply and lower interest rates. This is done with the goal of encouraging borrowing and spending, which in turn stimulates economic activity and helps to combat deflation or stagnation. QE is often used as a last resort when traditional monetary policy tools, such as lowering interest rates, have become ineffective. However, QE can also lead to concerns about inflation and asset price bubbles, and its effectiveness and potential side effects are the subject of ongoing debate in the field of finance.