- Central banks would increase the money supply to lower interest rates and generate economic growth
- phrase became popular in the 1960s
- started using the term "Quantitative Easing" instead during the 2010s
- The effectiveness has decreased as central bank balance sheets have ballooned in the 2010s
- have contributed to economic distortions and investment
- Other names:
- Printing Money
- Inflating the Currency
- Debase the Currency
- Quantitative Easing
Stimulus Criticisms
- Its kind of like a drug. It works well initially, but too much of it can be
- It can be helpful when Central Bank Balance sheets are relatively normal/small
- Over time too much of it hurts growth instead of helping