In recent events, asset purchases usually pertains to the purchasing of government bonds to lower interest rates, inject capital into the economy or both. It is an unconventional monetary policy used by a central bank to stimulate the economy, otherwise know as quantitative easing.
Asset Purchases
Related Terms
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Yield curve control (“YCC”), also sometimes called interest rate pegs, is where bond yields are set by the central bank. It is considered a type of unconventional monetary policy. Under yield curve...
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Forward guidance is a tool used by a central bank to try and influence market expectations of future levels of interest rates. “Forward guidance” in monetary policy means providing some information...
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Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the economy when conventional monetary policy has stopped working. It is more colloquially referred...
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A central bank is an organization that manages the currency of a country or group of countries and controls the money supply. Central banks, also called reserve banks, came into being because their...
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Monetary policy refers to the actions taken by a nation’s central bank to influence the availability and cost of money and credit to promote a healthy economy. Monetary policy can be broadly...