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accommodatory monetary policy
- Article from:
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A Dictionary of Economics
- Author:
- JOHN BLACK
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Copyright information© A Dictionary of Economics 2002, originally published by Oxford University Press 2002. (Hide copyright information)
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accommodatory monetary policy
A policy of allowing the supply of money to expand in line with the demand for it. If the
demand for money
rises because of sustainable real growth in the economy, accommodatory monetary policy is desirable, and failure to expand the
money supply
obstructs real growth. If, however, the cause of rising demand for money is a temporary, unsustainable surge in real ...