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Cheap Money

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Cheap Money
A monetary policy in which a central bank sets low interest rates so that credit is easily attainable. This makes borrowing easy for business, which stimulates investment and expansion of operations. The immediate result of cheap money is a boost in stock prices; in the medium term, cheap money promotes economic growth. However, if cheap money remains in the economy for too long, it can lead to a situation in which there is a glut of currency or too many dollars chasing too few goods and services leading to inflation. For this reason, most central banks alternate between policies of cheap money and tight money in varying degrees to encourage growth while keeping inflation under control.

cheap money


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lt;/a> <h1>Stocks jumps as G20 says cheap money to continue</h1> U.
This is the sad but inevitable consequence of the credit fuelled spending splurge and cheap money policies of the past 20 years, as a result of which total UK personal debt at the end of July stood at pounds 1.
But going by the conventional wisdom, those with credit problems are ineligible to access cheap money to buy a house on mortgage and that lenders do not offer them what they want.
 
 
 
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