Economics A-Level
Quantitative easing
What Quantitative easing means in Economics A-Level, as defined for AQA.
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: AQA
The central bank increases the supply of money and credit in the financial system, encouraging commercial banks to lend.
Topics that use Quantitative easing
- Central banks and monetary policy (AQA A-Level)
Related terms
- Aggregate demand
- Credit creation
- Economic governance
- Economic indicators
- Exchange rates
- Financial stability
- Hot money flows
- Inflation
Using Quantitative easing in the exam
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