Definition of easy money policy: nouna government policy of expanding the economy by making money more easily available, eg through lower interest. Tight-money policy a policy in which a central monetary authority, for example, the federal reserve system , seeks to restrict credit and raise interest rates ( compare easy-money policy.
Easy money policy used during a recession, goal- increase ad decrease reserve ratio, decrease the discount rate, buy securities from commercial banks or the public. Easy money is also known as cheap money, easy monetary policy and expansionary monetary policy inflation the federal reserve must carefully weigh any decisions to raise or lower interest.
Ultimately, the goal of easy money is to stimulate an economy many economists agree that the federal reserve is the most important political tool a government has to do this, because in the. Federal reserve chairman ben bernanke finally may be catching a break: his easy-money policies are showing signs of speeding up the economic rebound three years after he cut interest rates.
Chapter 16: federal reserve & monetary policy different components of the federal reserve, different types of money policy tools study play board of governors easy money policy. The bank of japan kept its ultra-easy monetary policy in place, though gov haruhiko kuroda said he would let a key interest rate rise more than previously—a nod to criticism about the side. An easy money policy is a monetary policy that increases the money supply usually by lowering interest rates it occurs when a country's central bank decides to allow new cash flows into the.
In a tightening monetary policy environment, a reduction in the money supply is a factor that can significantly help to slow or keep the domestic currency from inflation.
Definition of easy monetary policy: a central bank policy designed to stimulate economic growth by lowering short term interest rates, making money less. Easy-money policy definition at dictionarycom, a free online dictionary with pronunciation, synonyms and translation look it up now. Definition of easy monetary policy: a policy initiated by a central bank to lower the rate interest paid by banks to borrow money as a way to increase economic activity in some economic.