 A central bank implements quantitative easing by buying financial assets from commercial banks and other financial institutions, thus raising the prices of those financial assets and lowering their yield, while simultaneously increasing the money supply.This differs from the more usual policy of buying or selling short-term government bonds to keep interbank interest rates at a specified target value.Expansionary monetary policy to stimulate the economy typically involves the central bank buying short-term government bonds to decrease short-term market interest rates.