iambrianfu



Saturday, June 05, 2004

EASY monetary policy
A central bank policy designed to stimulate economic growth by lowering short term interest rates, making money less expensive to borrow. also called accommodative monetary policy or loose credit. opposite of tight monetary policy.

TIGHT monetary policy
A central bank policy designed to curb inflation by reducing the reserves of commercial banks (and consequently the money supply, through open market operations). also called tight money. opposite of easy monetary policy.

posted by iambrianfu [ 1:24 PM ] <$BlogItemComments$>