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

Global stock markets have seen relentless selling pressure in the first half of the year against the backdrop of a surge in inflation, the Ukraine conflict and the Fed's pivot away from easy-money policy.

From Reuters • Jul. 7, 2022

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

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

From Time • Feb. 5, 2013