In recent events, asset purchases usually pertains to the purchasing of government bonds to lower interest rates, inject capital into the economy or both. It is an unconventional monetary policy used by a central bank to stimulate the economy, otherwise know as quantitative easing.
Asset Purchases
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Related Terms
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Monetary easing refers to actions taken by central banks to stimulate economic growth by increasing the money supply and reducing interest rates.
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Small-scale asset purchases (SSAPs) are a monetary policy tool used by central banks to stimulate economic growth and maintain price stability.
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Yield curve control (“YCC”), also sometimes called interest rate pegs, is where bond yields are set by the central bank. It is considered a type of unconventional monetary policy. Under yield curve...
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Reserve Management Operation (RMO) Purchases are a type of central bank activity, where the central bank buys securities, in the open market to ensure that the banking system has an ample supply of reserves.
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Forward guidance is a tool used by a central bank to try and influence market expectations of future levels of interest rates. “Forward guidance” in monetary policy means providing some information...