monetary policy and quantitative easing

Monetary policy refers to the actions taken by a central bank to control and influence the supply of money and credit in an economy. It involves setting interest rates, managing inflation, and promoting economic growth and stability. Quantitative easing (QE), on the other hand, is a specific tool used in monetary policy. It involves the central bank purchasing government bonds or other financial assets from banks and other financial institutions. By injecting money into the economy through these purchases, QE aims to stimulate lending and spending, promote economic activity, and lower interest rates to encourage investment.

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