What Is an Easy Money Policy?

Generally speaking, easy monetary policy is to increase the supply of money in the market, such as issuing currency directly, buying bonds in the open market, reducing the reserve ratio and loan interest rates. When the central bank lowers the deposit reserve ratio and lowers the rediscount / reloan interest rate, it buys government bonds, invests money abroad, and increases market currency circulation, prompting commercial banks to expand credit scale, reduce interest rates, promote investment development, stabilize prices, Full employment, promotion of economic growth and balance of payments.

Loose monetary policy

Loose

Easy monetary policy,

1. reduce

1.Loose

1.Medium

Loose monetary policy

1. This time, following China s transition to the implementation of an active fiscal policy and a prudent monetary policy in response to the Asian financial crisis, the one loose and one stable regulatory mix is reproduced. To maintain stable economic growth, there must be corresponding expansion means to prevent Inflationary pressures require no more loose monetary policy.

2. It should be acknowledged that the current liquidity is excessive. But we must also see that in the past, it was a last resort to issue so many currency credits and played a key role in taking the lead in overcoming the crisis. As the situation changes, it is time for monetary policy to be adjusted.

3. The "moderately accommodative" monetary policy in the past two years is a "very significant move" in response to the international financial crisis. At this time, the Chinese economy has stabilized and recovered, and the moderately accommodative monetary policy should be promptly withdrawn.

4. To strengthen market protection and price stability, implement the "rice bag" governor responsibility system and "vegetable basket" mayor responsibility system, improve market control plans, and continue to rectify and standardize the market price order.