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

The nominee, Kazuo Ueda, an academic, is expected to shift the central bank’s course away from the easy-money policy favored by outgoing chief Haruhiko Kuroda.

From New York Times • Feb. 14, 2023

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

With no major surprises, the Fed's reaffirmation of its easy-money policy gave investors "a quick breath of fresh air," Mr. Draughn said.

From The Wall Street Journal • Jan. 27, 2010