Is monetary expansion the same as quantitative easing

Question

Is monetary expansion policy the same as quantitative easing (i.e the buying of US treasuries by Federal reserve which injects more USD into the economy)?

Does this answer your question? What's the difference between Quantitative Easing and regular central bank operations? — , Jun 12 '20 at 05:06

score 3 · Accepted Answer · answered Apr 20 '15 at 20:08

3

It is not. Monetary expansion is increasing the money supply (through whatever method).

Quantitative easing increases the money supply / injects liquidity, but also reduces privately hold stocks (and hence can reduce risks from the banks' balance sheets).

answered Apr 20 '15 at 20:08

FooBar

10,712
1
29
60

Thanks. What other methods except QE help increase money supply? – Victor123 Apr 21 '15 at 13:46
@Victor123 that sounds like a new question to me :) – FooBar Apr 21 '15 at 14:04

Is monetary expansion the same as quantitative easing

1 Answers1