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Accommodative Monetary Policy

Accommodative Monetary Policy Definition

A policy taken by the Federal Reserve in order to boost the amount of money available to banks. This occurs by the Fed lowering interest rates. This policy is typically taken when interest rates are high, and the economy is weak. It is an activist policy in order to pursue a higher rate of employment and a stronger economy. Also known as easing the money supply.
RELATED TERMS
Federal Reserve System
RELATED CATEGORIES
Economy



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