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
-
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...
-
Small-scale asset purchases (SSAPs) are a monetary policy tool used by central banks to stimulate economic growth and maintain price stability.
-
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...
-
Large-scale asset purchases (LSAPs) are a monetary policy tool used by central banks to increase the money supply and stimulate the economy.
-
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...