By TheStreet Staff What Is Quantitative Easing in Simple Terms?In modern finance, when the economy hits a rough patch, central banks often come to the rescue with emergency monetary stimulus, known as quantitative easing (QE). In order to increase liquidity and help spur economic growth, the central bank buys trillions of dollars’ worth of long-term securities, mainly government bonds, although it can also purchase corporate bonds, municipal bonds, mortgage-backed securities, and even stocks. By purchasing these securities, the central bank drives interest rates lower, which fosters more lendi…