Economics B A-Level
Quantitative easing
What Quantitative easing means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Quantitative easing
Check what you remember
Read the wording for your board, then hide it and explain Quantitative easing in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Involves asset purchases by the central bank to increase the money supply and stimulate lending when interest rates cannot be lowered further.
Topics that use Quantitative easing
- Demand-side policies (Pearson Edexcel A-Level)
Related terms
- Aggregate demand
- Demand-pull inflation
- Fiscal policy
- Investment
- Macroeconomic equilibrium
- Macroeconomic objectives
- Monetary policy
- Policy conflicts
Using Quantitative easing in the exam
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