"Easy" Money

Definition

"Easy" money refers to monetary policy that increases the money supply usually by lowering interest rates. It makes borrowing easier for businesses, which stimulates investment and expansion activities.

Related terms

Monetary Policy: The policy adopted by the monetary authority of a country that controls either the interest rate payable on very short-term borrowing or the money supply.

Federal Reserve System (Fed): The central banking system of the United States which regulates monetary policy.

Inflation: A general increase in prices and fall in the purchasing value of money.