What does QE3 stand for?
What is QE3 rate easing?
- QE3 is qualitatively different than credit easing (QE1) or quantitative easing (QE2). Let’s call QE3 rate easing. And while we can hope the economy strengthens so that rate easing is unnecessary, the push for it is already well-advanced.
What is the Fed's QE3 program?
- The Federal Reserve announced plans to unleash more stimulus Thursday, in its third attempt at a controversial program to rev up the U.S. economy. The policy, known as quantitative easing and often abbreviated as QE3, entails buying $40 billion in mortgage-backed securities each month.
What was the impact of QE3 on the economy?
- QE3 ultimately increased U.S. exports, for the same reason. Another benefit of QE3 was that it allowed continued low-cost expansionary fiscal policy. This boosted economic growth because government spending is an important component of gross domestic product.
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