<p>They just create them ex nihilo.</p>
<p>People sometimes say central banks print money, that is not literally true for every central bank (not for Fed since in US money is printed by the <a href="https://moneyfactory.gov/" rel="nofollow noreferrer">Bureau of Engraving and Printing</a>, nominally under the <a href="https://home.treasury.gov/about/bureaus" rel="nofollow noreferrer">Department of the Treasury</a>. However, most of it is on orders from Fed so they can supply banks with it – see <a href="https://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html" rel="nofollow noreferrer">Fed explainer here</a>) but they can always create more money at a keystroke of a keyboard.</p>
<p>When central banks  want to buy an asset they typically just electronically create sufficient money on their account to buy the asset.</p>

CC BY-SA 4.0
2022-01-05T12:11:00.693Z
Could you provide a source for your last sentence?
Riemann
CC BY-SA 4.0
2022-01-05T12:27:36.460Z
@Riemann its pretty much common knowledge but sure, here is one source from [investopedia](https://www.investopedia.com/articles/investing/081415/understanding-how-federal-reserve-creates-money.asp) I can also add source to textbook later when I am at home
1muflon1
CC BY-SA 4.0
2022-01-05T11:23:10.093Z
2022-01-05T12:29:54.270Z
2022-01-05T12:29:54.270Z
1muflon1
<p>From the <a href="https://en.wikipedia.org/wiki/Quantitative_easing" rel="nofollow noreferrer">Wikipedia page on QE</a>:</p>
<blockquote>
<p>Quantitative easing (QE) is a monetary policy whereby a central bank purchases predetermined amounts of government bonds or other financial assets (e.g., municipal bonds, corporate bonds, stocks, etc.)</p>
</blockquote>
<p>How do central banks get the money to purchase these financial assets?</p>

<macroeconomics><central-banking><quantitative-easing>
How do central banks get the money for quantitative easing?
Riemann
# How do central banks get the money for quantitative easing?

(Asked by: username_0 on 2022-01-05)

From the [Wikipedia page on QE](https://en.wikipedia.org/wiki/Quantitative_easing):

> Quantitative easing (QE) is a monetary policy whereby a central bank purchases predetermined amounts of government bonds or other financial assets (e.g., municipal bonds, corporate bonds, stocks, etc.)

How do central banks get the money to purchase these financial assets?

**Tags:** macroeconomics, central-banking, quantitative-easing


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## 1 answers

### Answer by username_1 on 2022-01-05. Score: 3 | Accepted answer

They just create them ex nihilo.

People sometimes say central banks print money, that is not literally true for every central bank (not for Fed since in US money is printed by the [Bureau of Engraving and Printing](https://moneyfactory.gov/), nominally under the [Department of the Treasury](https://home.treasury.gov/about/bureaus). However, most of it is on orders from Fed so they can supply banks with it – see [Fed explainer here](https://www.newyorkfed.org/aboutthefed/fedpoint/fed01.html)) but they can always create more money at a keystroke of a keyboard.

When central banks want to buy an asset they typically just electronically create sufficient money on their account to buy the asset.

> **Comments:**
> **username_0**: Could you provide a source for your last sentence?  
> **username_1**: @username_0 its pretty much common knowledge but sure, here is one source from [investopedia](https://www.investopedia.com/articles/investing/081415/understanding-how-federal-reserve-creates-money.asp) I can also add source to textbook later when I am at home  

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