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An easy money policy is a monetary policy that increases the money supply usually by lowering interest rates.[1] 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 likely leading to increased economic growth.[2]
- ^ Hirsch, Eric Donald; Kett, Joseph F.; Trefil, James S. (2002). The new dictionary of cultural literacy. Houghton Mifflin Harcourt. p. 455. ISBN 978-0-618-22647-4. Retrieved 4 April 2011.
- ^ "Easy Money Definition". www.investopedia.com. Retrieved May 5, 2014.