easy-money policy

Cultural  

1. A policy by which a central monetary authority, such as the Federal Reserve System, seeks to make money plentiful and available at low interest rates. (Compare tight-money policy.)

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An easy-money policy is often pursued to encourage investment and economic growth. It can lead to inflation, however.

Example Sentences

But a week later, a group of professional economists signed an open letter to the Fed chairman, Ben Bernanke, warning that continuation of an easy money policy risked “currency debasement and inflation.”

From New York Times • Jul. 23, 2013

Paulson did briefly speak about the prospect for inflation, which he expected to revive in the wake of central banks' easy money policy.

From Reuters • May 9, 2013

He adds more soberly that both Berkshire and the country have benefited from the easy money policy.

From New York Times • May 4, 2013

Whatever the psychological effect of the New Deal's borrowing and spending may have been, the New Deal's easy money policy has certainly given the Installment Plan a big push.

From Time Magazine Archive

One purpose of this easy money policy was to make private borrowing cheap, the hoary formula for reviving depressed business.

From Time Magazine Archive