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Terms
Monetary Policy
Stimulate the Economy
Stimulate the Economy
Nick Name
Stimulus
Parent term
Monetary Policy
When central banks say that they are "Stimulating the Economy", its another way of saying that they are increasing the money supply ( printing Money)
More about Stimulate the Economy
Discusses The Following
Experts
Child Terms
Notes
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