Social Sciences and History / Unit 14 SSH 1333 short lesson, about 20 seconds
Loose Against Tight; Quantitative Easing
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The idea
Expansionary, or loose, monetary policy raises money and credit and lowers interest rates, boosting aggregate demand against recession. Contractionary, or tight, policy reduces money and credit and raises rates to hold down inflation. In the two thousand eight to nine recession central banks also used quantitative easing.
In practice
Countercyclical: moving against the cycle.
Where people slip
Unit 15 carries aggregate demand.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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