Let me now consider quantitative easing and credit easing in turn. 4. How are unconventional measures implemented? How can the size and composition of the central bank balance sheets be modified? The straightforward way is for the central bank to directly purchase assets in the relevant markets.
4.1  Direct quantitative easing  When the central bank decides to expand the size of its balance sheet, it has to choose which assets to buy. In theory, it could purchase any asset from anybody. In practice, however, quantitative easing has traditionally focused on buying longer-term government bonds from banks.