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

Price gains have picked up rapidly, spurring a collective freak-out, causing some Fed officials to fret about their easy-money policy setting.

From New York Times • Aug. 27, 2021

But financial markets are having difficulty adjusting to the central bank’s new posture after years of easy-money policy helped boost stocks and bonds.

From The Wall Street Journal • Jan. 19, 2016

Still, rising rates signal an end to the easy-money policy that pushed 30-year mortgage rates to a record low of 3.31% in 2012.

From Los Angeles Times • Jun. 14, 2015

But Pimco's ability to enrich its returns by following the Fed does illustrate how the Fed's easy-money policy over the past five years has produced outsized winners.

From Reuters • Sep. 27, 2013

Federal Reserve Chairman Alan Greenspan pursued an easy-money policy that encouraged banks to lend as much as possible.

From Time • Feb. 5, 2013