The Federal Reserve has begun Quantitative Easing 2 or QE2 - "quantitative" because it is changing the quantity of money in the economy, and "easing" because it is easing the pressures of the market. (AFP/File/Patrick Lin)The practice is called Quantitative Easing 2 or QE2 -- "quantitative" because the Federal Reserve is changing the quantity of money in the economy, and "easing" because it is easing the pressures of the market.
The vast majority of all money in the U.S. economy is created already, when private banks issue loans to individuals.