Media playback is unsupported on your device

How does quantitative easing work?

9 February 2012 Last updated at 18:47 GMT

The Bank of England has agreed to extend its quantitative easing (QE) programme by £50bn to give a further boost to the UK economy.

When completed, it will bring the total amount of QE stimulus to £325bn.

Economics Editor Stephanie Flanders looks at how the latest cash injection will work.