QE2, or “quantitative easing”, was enacted in the United States in November 2010.

Making Headlines
The U.S. Federal Reserve announced in early November that it would inject nearly a trillion dollars into the economy in the next year through a second round of quantitative easing. The controversial policy aims to spur job growth and usher in more price stability as the U.S. continues to slog through fiscal uncertainty.
 
The Fed will purchase $600 billion in Treasuries and pump another $300 billion into the pool using proceeds from investments through the third quarter of 2011. This second attempt at quantitative easing (known as QE2) comes after the Fed purchased more than $1.8 trillion in Treasuries in late 2008 and early 2009.
 
So what exactly is quantitative easing? Essentially, it’s a type of economic policy where banks inject money into a national economy when interest rates are hovering near or at zero. In this case, the Federal Reserve will basically conjure these billions from thin air and then purchase an array of financial assets.
 
The idea is that adding liquidity to the economy will help stimulate growth. But there are often concerns that quantitative easing could lead to hyperinflation. Some experts also question whether a $900 billion injection will be enough, considering the first round of quantitative failed to levy a truly significant long-term impact.