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Nearby Terms

accommodative monetary policy

definition

Central Bank policy that seeks to stimulate economic growth by loosening money supply. An accommodative monetary policy is typically characterized by a succession of decreases in the Federal funds rate which makes money easier (cheaper) for business to borrow. See Federal Open Market Committee (FOMC); Federal Reserve. Compare to Tight Monetary Policy.

Related Terms

 • tight monetary policy  • Easy Monetary Policy  • Loose Credit