expansionary monetary policy

Definition

A type of fiscal policy focused on increasing the size of a country's money supply in relation to demand, taking advantage of the increased capital to announce tax cuts and higher government expenditures to spur economic growth. Reducing interest rates and allowing increased discount window lending are also indirect methods of expansionary monetary policy. See also contractionary monetary policy.

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  • You should understand how an expansionary monetary policy works and try to figure out how to utilize it for your business.

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  • I thought the expansionary monetary policy was really good and allowed everyone to gain a lot in the future with that great policy.

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  • You should always have a good understanding of any expansionary monetary policy and how it may affect your company in the long term.

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