 However, when short-term interest rates approach or reach zero, this method can no longer work (a situation known as a liquidity trap).In such circumstances, monetary authorities may then use quantitative easing to further stimulate the economy, by buying financial assets without reference to interest rates, and by buying riskier or longer maturity assets (other than short-term government bonds), thereby lowering interest rates further out on the yield curve.Quantitative easing can help bring the economy out of recession and help ensure that inflation does not fall below the central bank's inflation target.