The digital era · 2000–today
2001
Quantitative easing begins in Japan
With rates at zero, the Bank of Japan buys bonds to add money.
In March 2001 the Bank of Japan, with interest rates already near zero and prices falling, began buying large amounts of government bonds to push money into the economy.
💡 Why it made sense then
When rates can't go lower, a central bank needs another tool.
Ideas it gave us
- 🌍 Quantitative easing
Quantitative easing is when a central bank creates money to buy large amounts of bonds, pushing long-term interest rates down to support the economy when short-term rates are already near zero.
Practise with $10,000 in play money
Free. No real money involved.