BNET Business Dictionary

Business Definition for: Cheap Money

  • low interest rates, used as a government strategy to stimulate an economy either at the initial signs of, or during, a recession

Additional Resources

Economy needs cheap money
THE Evening Standard worries about the falling value of sterling but this is just an implication of cheap money clearly when interest rates are low people put their money elsewhere with a better return (18 December). If we want economic recovery, we must reduce the cost...
Tags: Bank of England
Research articles 2008-12-01
The end of cheap money - The end of cheap money; Interest rates.
Interest rates will soon have to rise in America, just as they already have in Britain and Australia MONEY has never been so cheap and so easy to obtain. The average of short-term interest rates in America, Japan and Europe is at its lowest ...
Tags: America, deflation, Federal Reserve Board, FINANCE, inflation
Research articles 2004-04-24
Recognizing an Inflationary Bias: The Fed's rising interest rates could mean more expensive money - or not.
Is money cheap or expensive? Controversies over "cheap money" have roots in the bullionist crisis of the 1790s involving the British central bank. From its founding in 1694, the Bank of England assumed a monopoly privilege, making it the de facto central bank of Great Britain. The bank received all...
Tags: bank, Bank of England, Federal Reserve Board
Research articles 2004-08-01
Europe takes on money monster
Byline: By Stella Dawson The European Central Bank recently released a cartoon for euro zone schoolchildren showing a purple inflation monster fighting to burst out of a glass jar. Three factors appear to have persuaded even the more reluctant ECB policymakers that they must redouble their...
Tags: European Central Bank
Research articles 2006-03-20
Trapped Inside A Property Bubble
Former Morgan Stanley Analyst Andy Xie explains why China might yet be in a real estate bubble: When China's real estate bubble finally bursts while exports become less competitive, the consequences could be severe. The next 10 years will be more challenging than the past decade. Indeed, unless economic policies...
Tags: China, Growth
News items 2010-01-12
Wall Street Bonuses: 4 Questions
Today is the 22nd anniversary of "Black Monday," when the Dow Jones Industrial Average fell 22.6% in one day. Over two decades later, people are waking up to another form of Black Monday--one where we are asked to make sense of the mind-blowing compensation that Wall Street garners, while Americans are still feeling glum about...
Tags: Bank, Troubled Asset Relief Program, Compensation, Financial, Wall Street, Government, Benefits, Financial Accounting, Human Resources, Finance, Jill Schlesinger
Blog posts 2009-10-19
How Much Is the Recent Spike in Rates Going to Hurt Homebuying?
Dear Ali: This is your good angel talking. While you still have your health, come in off the ledge and explain, what's the effect of the recent spike in mortgage rates? A:I would really like a do-over of the past two days, please....
Tags: Recovery, Interest Rate, Inflation, Currency & Foreign Exchange, Financial Planning, Financial Services, Finance, Alison Rogers
Blog posts 2009-05-29
Cheap Hardware Will Force Cloud Computing
Cheap Hardware Will Force Cloud ComputingRE: Cheap Hardware Will Force Cloud ComputingThank you for bringing up a discussion of "netbooks". I'm an anticipated fan of the CherryPal C100, which is being touted as a cloud computer. The CherryPalâ„¢ C100 desktop is about the size of a paperback book, but...
Tags: PRODUCTIVITY, Desktops, Freescale, CherryPal C100, Force Cloud Computing, Cheap Hardware, cloud computing
Discussion threads 2008-08-21
Super Cheap pours money into BCF.
Nov 03, 2005 (Inside Retailing - ABIX via COMTEX) -- Super Cheap Auto is expanding across Australia. The aim of its management is to have 300 stores across Australia and New ...
Tags: Comtex Inc.
Research articles 2005-11-03
Projections See Stronger Economy On The Horizon; Effect Of Rising Rates Is Queried
Signaling an end to an era of cheap money, the Federal Reserve Board last week hiked its target for the bellweather Fed Funds rate by 25 basis points from its 46-year-low of 1%. Signaling an end to an era of cheap money, the Federal Reserve Board last week hiked...
Tags: Federal Reserve Board
Research articles 2004-07-05
Opus Southwest Speculates with New Phoenix, Ariz., Office Buildings.(Originated from The Arizona Republic)
Apr. 2--Not too long ago, you could nearly see through dozens of Valley high-rises because they were so empty. Cheap money with loan payments built into some credit agreements allowed speculative developers to build wherever they saw vacant land. Apr. 2--Not too...
Tags: Microsoft Office, Phoenix Technologies, Valley
Research articles 1997-04-02
Britain's Beagle mission to Mars done 'on the cheap': inquiry
LONDON AFP — Beagle 2, the ill-fated British space probe that vanished while attempting to land on Mars, failed because the country's government wanted a mission to the Red Planet "on the cheap", a report by lawmakers said Tuesday. The committee of British MPs attacked the government for failing...
Tags: Agence France-Presse, European Space Agency, Government, SOFTWARE
Research articles 2004-11-01
Taxpayer money wasted on cheap politicians
I don't make $1 million a year, but I think every member of Congress should be paid at least that much. It's not because those turkeys in Washington deserve it. It's because we deserve a lot better people than we have in Congress. The cost of paying every...
Tags: CAREER, deception, re-election, U.S. Congress
Research articles 2005-12-29
Stop living off cheap labor
In response to Megan Stoker's letter "Wal-Mart deserves praise" (Readers' Forum, Feb. 20), I heartily agree with her conclusion that "you can't hate your retailer and shop there, too." That is precisely why we do not shop at Wal-Mart. Our family has decided it is better to pay an additional...
Tags: Wal-Mart Stores Inc.
Research articles 2005-02-25
Sharp fluctuations in prices will give us all plenty of food for thought; way out west
Byline: Steve Dube in Germany WEWERE always taught that the price of bread fuelled the French revolution - particularly when Queen Marie Antoinette, told that people could no longer afford it, replied: "Let them eat cake." Now we are told that the era of cheap food...
Tags: Sharp Corp.
Research articles 2008-09-23
Mind Over Money | BTalk Australia
(13min 03) On today's BTalk Australia Phil Dobbie talks to Adrian McMaster, author, psychologist and financial adviser. Adrian's book "Mind Over Money" Wilkinson Publishing explains how the way you live can determine how wealthy you are. He explains the three simple rules and how to implement them, together with the...
Tags: Income, Advisor, Adrian, Financial Advisor, Taxes, Investment, Operational Accounting, Free Trade, Financial Planning, Finance, Phil Dobbie
Blog posts 2008-12-01
How Much Money Is Enough Now?
Of all the questions raised in the wake of the Lehman collapse, this might be the one you most need to ask — and the person to ask is yourself. ...
Tags: Financial, Stock, Advisor, Fiduciary, Investor, MoneyWatch, Zvi Bodie, Joseph Heller, Vonnegut, Financial Accounting, Investment, Finance, One Year Later, Lehman Bros., Feature Package, Recession, Economy, How Much, Enough, John Bogle, George Kinder, Mike Zimmerman
Articles 2009-09-15
Starting A Business: Five Tips For Starting A Business On The Cheap
Wondering how to become an entrepreneur? You don't need a ton of money to start a business. Here are five tips for starting a business on the cheap. If you've always wanted to try your hand at business ownership but don't have thousands of dollars to invest in it, you're...
Tags: Small Business, Gaebler Ventures
White papers 2009-01-01
Oil Refiner Valero Plows More Money into Renewables with Terrabon Investment
The ink has barely dried on Valero Energy's $477 million check for seven ethanol plants and a development site from bankrupt VeraSun and it's already investing more money into another renewable project. In this latest endeavor, Valero has become the lead investor in Terrabon, a company developing technology to convert trash from...
Tags: Valero L.P., Terrabon, RFS, Investment, Finance, Kirsten Korosec
Blog posts 2009-04-10
Health Care Reform Is All In The Money
One of the core goals of the Obama Administration and the Democratic Congress is some sort of health care reform. The House and Senate are creating their own bills; in some cases several different ones from different groups of legislators. The primary goal of all this is to...
Tags: Hawaii, Medicare, Health Care, Healthcare Reform, Vertical Industries, Healthcare, Benefits, Insurance, Human Resources, Business Operations, Corporate Insurance, Matthew Potter
Blog posts 2009-06-22
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