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
    Commented Apr 21, 2015 at 13:46
  • $\begingroup$ @Victor123 that sounds like a new question to me :) $\endgroup$
    – FooBar
    Commented Apr 21, 2015 at 14:04

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