when central banks like the u s federal reserve opt to engage in quantitative easing they buy securities from the market to increase the money supply this means that banks have more reserves on hand and the increased liquidity revitalizes lending and investing 
the bottom lineeconomic stimulus can refer to monetary and fiscal policies that governments put in place to energize economic activity in the private sector policymakers aim stimulus efforts at critical areas of the economy with hopes that the multiplier effect will provoke broader economic growth there is still plenty of debate surrounding the long term impact of economic stimulus programs proponents argue that targeted economic stimulus can be a vital recession fighting tool that avoids the risks associated with more drastic measures meanwhile critics say that economic stimulus packages may have unpredictable and negative impacts in the long term 