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 1


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).

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

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Not the answer you're looking for? Browse other questions tagged or ask your own question.