easy money


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Easy money

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.

easy money

A condition of the money supply in which the Federal Reserve permits substantial funds to accrue in the banking system, thereby cutting interest rates and facilitating the acquisition of loans. In the resultant period when borrowing is relatively easy and inexpensive, security prices may be initially stimulated. But an extended period of easy money eventually may depress security values as investors begin to fear inflation. Also called cheap money. Compare tight money.
References in periodicals archive ?
Easy money is currently in talks with several other Merseyside artists.
If those conditions are taken into account, it is premature to seek an end to the current quantitative easy money policy.
Amazingly, many school administrators--lured by the promise of easy money for their strapped budgets--are fueling the obesity epidemic by selling junk foods.
Long the captain of capitalism's pom-pom squad, Bush now tries to come across as the Frank Serpico of Wall Street, thundering, "No more easy money for corporate criminals, just hard time.
The league went on to claim that many of the offers received by e-mail could be fraudulent and that consumers should watch out for offers of easy money, cheap prices or free services with potential hidden costs.
Too often, the financial free ride of a hefty inheritance can create "trust fund babies"--heirs who find this easy money a ticket to self-indulgence and irresponsibility.
NEW Selection--Money Tree Suite - Easy Money, Golden Years and Retirement Solutions (No.
IT was easy money for jockey Richard Hughes when King Darius cruised home in the Interoute Handicap at Kempton.
1 of the popular Easy Money income and expense tracking program.
Since the first wave of baby boomers will not reach this age until well into the next century, and it is difficult to fully anticipate when demand will be satisfied, the industry must resist the temptation of easy money and not overbuild.
Telebrands, whose Ab Flex and EZ Krunch continue to sell strongly, according to the company, this fall will feature the Easy Money coin organizer.