Quantitative Easing for Regular Folks: Three Lessons from the New York Times

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Quantitative easing (QE) pops up regularly in economic and market commentary. The term conveys a lot to financial professionals who know the fine points of QE1 vs. QE3. However, it’s likely to make the average investor ask, “Huh?”

When discussing quantitative easing – or other technical terms – in your communications aimed at ordinary folks, I suggest that you learn from newspapers. Here are three techniques I found in recent articles:

Technique 1: Avoid the topic entirely

Sometimes newspapers avoid the topic entirely, even when it’s relevant. For example, the article U.S. Economy Grew 1.7% During the 2nd Quarter, Topping Forecasts in the New York Times, referred to the Fed’s “huge stimulus efforts.” This phrase, of course, includes more than just quantitative easing.

You should consider this technique too, if jargon-filled details aren’t important to your discussion.

Technique 2: Discuss the topic, but skip the technical term

Another technique is to describe quantitative easing in general terms, as in the following New York Times headline: Bond Purchases by Fed Will Continue, at Least for Another Month. The article described the Fed’s adding “$85 billion a month to its holdings of mortgage-backed securities and Treasury securities.”

Other references to QE in the article included:

  • “Asset purchase program”
  • “Monthly asset purchases”
  • “Bond-buying program”

In many cases, those descriptions provide enough detail for readers.

Technique 3: Use the term, but explain it

The term “quantitative easing” didn’t surface until close to the end of the New York Times ‘ “Bond Purchase” article:

Other economists, including Lawrence H. Summers, a leading candidate to succeed Mr. Bernanke, have expressed similar concerns about the purchases, which go under the label “quantitative easing.”

Because the article had described the purchases earlier, it didn’t explain them in detail in the sentence above. If this sentence were the article’s first reference, the author could have included an explanation something like the following:

… quantitative easing, the Fed’s purchase of long-term bonds to help stimulate the economy by lowering long-term interest rates …

What’s right for you?

Ask yourself whether your readers need to see the term “quantitative easing.” Perhaps it’s enough for them to be aware of “the Fed’s bond-buying program.”

If you’re writing for a mixed audience of regular folks and investment professionals, you may choose to use “quantitative easing.” But, in that case define it on first use and put the term in context.


Susan Weiner, CFA, is the author of Financial Blogging: How to Write Powerful Posts That Attract Clients, which is tailored to financial planners, wealth managers, investment managers, and the marketing and communications staff that supports them. Read her blog or follow her on Twitter, Google+ or the Investment Writing Facebook page.

Read more articles by Susan Weiner