Easy money policy definition

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Easy money policy

Easy money policy logo #21000 An easy money policy (or accommodative monetary 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 banking system. Since interest rates are lower, it is easier for banks and lenders to loan money, thus leading to increase....
Found on http://en.wikipedia.org/wiki/Easy_money_policy
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