Expansionary monetary policy to stimulate the economy typically involves the central bank buying short-term government bonds to lower short-term market interest rates. However, when short-term interest rates reach or approach zero, this method can no longer work. Quantitative easing can help ensure that inflation does not fall below a target. Standard central bank monetary policies are usually enacted by buying or selling government bonds on the open forex infinite yield to reach a desired target for the interbank interest rate.
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