Quantitative Easing, often called QE, is a monetary policy used by central banks to support the economy during periods of slow growth or financial stress. Under QE, central banks purchase government bonds and other financial assets to increase liquidity in the financial system.

By injecting money into the economy, central banks aim to lower interest rates, encourage borrowing, and stimulate investment and spending. The European Central Bank and other major central banks have used QE during economic crises.

For investors, QE can influence stock markets, bond yields, and overall market sentiment, making it an important concept to understand.