easy-money policy


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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notes for easy-money policy

An easy-money policy is often pursued to encourage investment and economic growth. It can lead to inflation, however.
The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.