What is EXPANSIONARY MONETARY POLICY?

Fiscal policy intending to increase country’s money supply, building it higher than demand, then taking advantage of the increased capital to make tax cuts while increasing government spending to trigger spur economic growth. This approach to fiscal policy is reducing interest rates while allowing increased discounted lending. Refer to contractionary monetary policy.

More On This Topic



Link to This Definition
Did you find this definition of EXPANSIONARY MONETARY POLICY helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary