FACTBOX - What is quantitative easing?

(Reuters) - Central banks throughout the world are considering or turning to non-conventional measures like quantitative easing to keep credit flowing as they run out of scope to lower benchmark interest rates any further.

But what is quantitative easing? Here are some details:

WHAT IS QUANTITATIVE EASING?

-- Quantitative easing, notably employed by Japan from 2001 until 2006, refers to ways of boosting economic growth after traditional monetary policy tools, such as interest rate targets, have been exhausted.

-- Central banks flood the banking system with masses of money, more than is needed to keep official interest rates at zero or a low rate, to shore up financial systems and promote lending. They usually do this by buying up large quantities of assets from banks.

MAJOR CENTRAL BANKS AND QUANTITATIVE EASING:

* U.S. FEDERAL RESERVE:

-- Economists agree the Fed's various programmes to boost the flow of credit through the expansion of its balance sheet to over $2 trillion (1.41 trillion pounds) can be regarded as a form of quantitative easing.

-- On March 3, the Fed announced the details of the Term Asset-backed Securities Loan Facility, TALF. A $200 billion (91 billion pound) programme to lend against securities backed by student, auto, credit card and business loans, TALF could expand to $1 trillion and include troublesome mortgage and debt securities from banks.