## When Central Banks Opened the Floodgates: QE Explained
Quantitative easing, or QE for short, is one of those economic tools that sounds complicated but works quite straightforwardly. Central banks like the Federal Reserve and the ECB use it when they need to give a breather to struggling economies. Basically, it involves injecting money out of thin air so that everything starts flowing again.
## How Exactly Does this Mechanism Work?
The process is simple: the central bank enters the market and begins to buy assets, mainly government bonds and mortgage-backed securities, directly from banks