Meaning of QE | Babel Free

Definitions

1. Initialism of quantitative easing.
   abbreviation, alt-of, initialism, uncountable
2. Initialism of Queen Elizabeth Hospital.
   Hong-Kong, abbreviation, alt-of, initialism

Examples

“In times of severe economic distress, however, rates may fall⟳ to zero. Cue QE. When the Bank of Japan (BoJ) pioneered QE in 2001, its goal was to buy⟳ enough securities to create⟳ a desired quantity of reserves (hence, “quantitative easing”). Its actions, it hoped, would raise⟳ asset prices and end⟳ deflation.”

“It will be tempting for the US and Europe to engage⟳ in some financial repression in the coming years, using various means to force⟳ interest⟳ rates lower. Not only will it make⟳ America’s addiction to debt seem manageable, it will help⟳ ease the transition to an AI economy, Cheap debt will allow⟳ more zombie companies, which would normally be displaced by technology, to survive⟳. […] Some of America’s current economic problems are the result⟳ of past forays into yield-curve control⟳. The Federal Reserve’s QE during the pandemic is still causing problems in the housing market — it artificially lowered mortgages rates, which then went up when inflation returned. Meanwhile, the Treasury is losing money on its bond portfolio, and the bond market is experiencing dislocations as the Fed reduces its large post-pandemic balance sheet. All this is the result⟳ of only a few years of trying to control⟳ the yield⟳ curve. If it becomes normal policy, expect⟳ worse distortions and more threats to Fed independence. Japan’s policies, followed for decades, created thousands of zombie companies. The danger for the US is that financial repression, pursued on a large scale, would create⟳ a zombie economy.”

CEFR level