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)?
1 Answer
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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).
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$\begingroup$ Thanks. What other methods except QE help increase money supply? $\endgroup$ Commented Apr 21, 2015 at 13:46
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$\begingroup$ @Victor123 that sounds like a new question to me :) $\endgroup$– FooBarCommented Apr 21, 2015 at 14:04