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Expansionary Monetary Policy Examples. The Fed also implanted an expansionary policy during the The central bank will often use policy to stimulate the economy during a recession or in anticipation of a recession. However, without the expansionary monetary policy, the recession could have been even deeper.

Lecture Notes -- The Federal Reserve and Monetary Policy
Lecture Notes -- The Federal Reserve and Monetary Policy (Gene Daniel)
Changing the Required Reserve Ration (RR). The goal of an expansionary monetary policy is simply to increase the supply of money and in this way stimulate lending and business activity. When the economy is in recession, the central bank increases the money supply by a combination of decrease in discount rate, purchase of government bonds and reduction in the required reserve ratio.

Expansionary monetary policy deters the contractionary phase of the business cycle.

Expansionary monetary policy involves cutting interest rates in an effort to increase economic growth.

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Expansionary Monetary Policy: Increasing the MS to decrease UE b. Bank credit has become these days an important constituent of the money supply in the country. An expansionary monetary policy is focused on expanding, or increasing, the money supply in an economy.

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