GO
Loading...

Quantitative Easing: CNBC Explains

If you’ve been reading about the markets recently, it’s likely you’ve heard about quantitative easing, also known as QE. The U.S. central bank engages in quantitative easing to influence the economy by increasing cash in order to stimulate economic activity. But how does QE differ from normal federal reserve open market operations? Also, how does U.S. quantitative easing differ from Japan’s quantitative easing program? Salman Khan of the Khan Academy explains the finer points of quantitative easing.

From the first video, you’ll understand:

  • How quantitative easing differs from normal Fed operations
  • The types of assets purchased by the Fed under QE


From the second video, you'll understand:

  • The rationale behind engaging in QE
  • How US "credit easing" differs from Japanese quantitative easing





Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • Tips on the best-performing portfolio strategies and global market trends that can help you become a smarter investor.

  • Financial Advisor

    Some investors turn to advisors for career planning. A look at how FAs help clients assess talent, skills and training.

  • Trading Nation

    Trader Nation is not simply about finding that next trade -- it is a place where traders trade better together.