Once interest rates are effectively zero, the central bank of a country is in a bind as to what it can do to improve the economy. One thing it can do is called Quantitative Easing, whereby they do something like what is described here: The Fed’s $600 Billion Statement, Translated Into Plain English on Planet Money for NPR. What I like about this article is the explaination of FED-speak into something everyone can understand.

I also like how it slams the head of the Kansas City Fed, too. 🙂 Frankly the guy is an inflation hawk and he should be fired. But hey, I don’t run the Fed.