BNET Business Dictionary

Business Definition for: Easy Money Policy

  • a government policy which aims to expand the economy by making money more easily accessible to the public. This is done by strategies such as lowering interest rates and offering easy access to credit.

Additional Resources

Fed's weak-dollar policy helps buoy commodity price bubble
Rising global demand, China, poor global harvests, ethanol, biodiesel and overeager speculators all have played a significant role in the run-up of commodity prices. But it's been the Federal Reserve's easy-money policy that is the biggest culprit behind runaway food cost inflation.
Tags: commodity price, Federal Reserve Board
Research articles 2008-05-19
Key Market Factors: Global Melt-Up, Consolidation or Correction?
John Furlan submits:Thanks very much to followers and for comments. Factors and ratings below are my opinion of the equity markets’ current views, the “market’s mind,” how it responds to changing expectations of key fundamentals, not my personal views of them. Markets are very dynamic, and risk preferences, time...
Tags: US Market, John Furlan
External links 2009-08-09
Fed Officials Differ on Recovery's Pace
By Mark FelsenthalRICHMOND, Virginia (Reuters) - Top Federal Reserve officials on Tuesday struck differing notes on the likely pace of the U.S. economic recovery and one warned that pockets of weakness must not deter the central bank from withdrawing its extraordinary economic support.Jeffrey Lacker, the president of the Richmond Federal...
Tags: Bank, Recovery, Federal Reserve Board, Inflation, Currency & Foreign Exchange, Asset, Asset Management, US
News items 2009-11-17
Fed Officials Differ on Recovery's Pace
By Mark FelsenthalRICHMOND, Virginia (Reuters UK) - Top Federal Reserve officials on Tuesday struck differing notes on the likely pace of the U.S. economic recovery and one warned that pockets of weakness must not deter the central bank from withdrawing its extraordinary economic support.Jeffrey Lacker, the president of the Richmond...
Tags: Bank, Recovery, Federal Reserve Board, Inflation, Currency & Foreign Exchange, Asset, Asset Management, US
News items 2009-11-17
Fed Seen on Hold as Outlook Uncertain
By Kristina CookeNEW YORK (Reuters) - The U.S. economy may have turned a corner after the deepest recession in some 70 years, but Federal Reserve policymakers appear to be in no rush to raise interest rates.The Fed is widely expected to keep its benchmark interest rate where it has been...
Tags: Microsoft Outlook, Federal Reserve Board, Currency & Foreign Exchange, Mortgages, Financial Services, Finance, Capital Structures, Financial Planning
News items 2009-11-01
Evening Standard, London, Anthony Hilton column.
By Anthony Hilton, Evening Standard, London Knight Ridder/Tribune Business News Nov. 22--PERIL OF US CHEAP-MONEY POLICY: The record of Lord Lawson, Tory Chancellor of the Exchequer in the late 1980s, was marred, in the eyes of his critics, by the way his...
Tags: bank, economist, FINANCE, inflation, Investment
Research articles 2004-11-22
China's Monetary Policy Spirals Out of Control
Sean Maher submits: Are Chinese officials about to panic and rein in the reckless bank lending that has fuelling nascent bubbles in local real estate and equity markets, and indeed artificially boosting commodities such as copper? While investors have cheered China's latest Q2 GDP growth of 7.9% as evidence...
Tags: China, Sean Maher
External links 2009-07-28
Bank of Japan leaves monetary policy unchanged
TOKYO, AFP ? The Bank of Japan's BOJ policy board has decided unanimously to leave its easy monetary policy unchanged at the end of a two-day scheduled meeting. Economists had largely expected the central bank to take no action after its surprise credit easing at its last meeting on...
Tags: Agence France-Presse, bank, deflation, FINANCE
Research articles 2004-02-04
Alan Greenspan and the embrace of the duchesses. (US monetary policy)
Federal Reserve Board chairman Alan Greenspan's endorsement of Pres Clinton's economic policy is lukewarm, as he would have preferred more spending cuts instead of increased taxes. It remains to be seen how Greenspan's monetary policy will fit into the Clinton plan.Pundits say that America's Fed is offering Bill Clinton easy...
Tags: bank, Federal Reserve Board, FINANCE, Taxes
Research articles 1993-03-13
Americas: CPI flashes caution as Fed eases policy, The
The Federal Reserve's aggressive easing of monetary policy may be enough to keep the US economy from falling into recession, but the risk is that easy money could lead to a burst of inflation this winter, some economists warn.
Tags: Federal Reserve Board
Research articles 2001-06-01
Zacks.com Announces That Kelley Wright Highlights the Following Stocks: Baldor Electric, Ennis Business Forms, and Home Depot
CHICAGO -- The Fed's easy money policy is about to change. Kelley Wright can show value investors how to handle the end of this interest rate cycle through his investment outlook and three stock profiles. Read about Baldor Electric (NYSE:BEZ), Ennis Business Forms (NYSE:EBF), and Home Depot (NYSE:HD). Kelley Wright...
Tags: Home Depot Inc., stock
Research articles 2004-06-22
Dollar flat as BOJ intervention fears stem dollar bearishness.
TOKYO, Dec. 24 Kyodo The U.S. dollar stayed almost flat against the yen Wednesday in Tokyo, as fears of Bank of Japan BOJ intervention stifled persistent dollar bearishness stemming from the U.S. Federal Reserve's easy money policy and last week's weak U.S. consumer prices ...
Tags: Federal Reserve Board, FINANCE, Tokyo, U.S.
Research articles 2003-12-29
Angst grows over end of 'easy money' policies
WASHINGTON AFP — Japan's shift away from its ultra-loose monetary policy is the latest in a series of central bank moves creating jitters in financial markets but which may mean a healthier global economy, analysts say. Markets have recently been roiled by growing concerns about actions by central banks...
Tags: analyst, bank, economist, Federal Reserve Board, FINANCE, inflation, Japan
Research articles 2006-03-10
Interest Rate Change in Britain May Signal Farewell to Easy Money.
Daily Mail, London Knight Ridder/Tribune Business News Nov. 7--There have been few more widely-telegraphed changes in interest rates than the quarter-point rise to 3.75 percent unveiled by the Bank of England. It is, nonetheless, a seminal event for the British...
Tags: Bank of England, Barclays Plc., borrower, FINANCE
Research articles 2003-11-07
Mortgage rates are dropping once more.
By Mike Freeman, The San Diego Union-Tribune Knight Ridder/Tribune Business News Aug. 12--In June, it looked like the days of near-record-low mortgage rates were coming to an end. Fixed-rate mortgages had climbed to 6.3 percent, compared with 4.99 percent...
Tags: bond, Federal Reserve Board, FINANCE, Mortgages
Research articles 2004-08-12
Deflation is Our Biggest Worry -- Not Inflation
Many economists are worried about high inflation over the next few years. This is based on a misdiagnosis of the current economic crisis. Although the recession officially began in December 2007, until last August the damage was mostly confined to housing and finance. In August 2008, the recession spread to...
Tags: Federal Reserve Board, Monetary Policy, Deflation, Inflation, Currency & Foreign Exchange, Finance, Scott Sumner
Blog posts 2009-06-26
Gold's Current 'Message'
Calafia Beach Pundit submits: Judy Shelton has a good article about the virtues of a gold standard in yesterday's WSJ, so I thought I would add my chart click to enlarge on real gold prices to the discussion. As this chart shows, real gold prices are...
Tags: US Market, Gold & Precious Metals, Calafia Beach Pundit, Streettracks Gold Trust
External links 2009-02-13
The Lost Culture of Saving
Social scientist Barbara Dafoe Whitehead discusses the institutions and forces that conspire against saving, and how we can change them. According to Whitehead, shortsighted government policy and a financial system based on greed turned Americans away from thrift… Even before it was fashionable, Barbara Dafoe Whitehead was proselytizing about the...
Tags: Bank, Lottery, Debt, MoneyWatch, States, Government, Financial Services, ATM, Sales Channel, Vertical Industries, Networking, Sales, Enterprise Software, Software, Saving, Thrift, Consumer Spending, MoneyWatch Q&A, Thrift Savings Plans, Retirement Planning, Retirement Income, Savings, Paradox of Thrift, Cait Murphy
Articles 2009-03-05
Commodity Prices Have Plenty of Upside Potential
Calafia Beach Pundit submits: Commodity prices and gold prices continue to rise. This chart makes two important points: 1) in real terms, commodities are still quite cheap from an historical perspective, and 2) monetary policy plays a very important role in commodity prices. I've broken the past 40...
Tags: US Market, Calafia Beach Pundit, iShares GSCI Commodity-Indexed Trust
External links 2009-11-11
The New Gold Rush: Lots of Risk
Calafia Beach Pundit submits: Gold was in the news Tuesday, setting a new all-time high of $1085/oz. as of this writing. The first chart here shows nominal prices, while the second shows gold in constant dollar real prices. Either way you look at it, gold has enjoyed a...
Tags: Gold & Precious Metals, Calafia Beach Pundit, Gladstone Plc.
External links 2009-11-04
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