From ACT Wiki
Jump to navigationJump to search
Monetary policy - money supply.
Measures designed to increase the money supply.
Usually with the intention of stimulating the supply of goods and services, increasing confidence, and encouraging lending and activity in the real economy.
- Safer to ease too much
- "It is safer [at present] to err on the side of easing somewhat too much, and then if necessary tighten as capacity pressures eventually build, rather than ease too little and find the economy gets stuck in a low inflation rut ..."
- Michael Saunders, External Member of the Bank of England's Monetary Policy Committee (MPC), May 2020.