Stimulus (economics)

Typical intervention strategies under different conditions

In economics, stimulus refers to attempts to use monetary policy or fiscal policy (or stabilization policy in general) to stimulate the economy. Stimulus can also refer to monetary policies such as lowering interest rates and quantitative easing.[1]

A stimulus is sometimes colloquially referred to as "priming the pump" or "pump priming".[2]

  1. ^ "Economic Stimulus". Investopedia.
  2. ^ "Pump Priming". Investopedia.