cheap money policy

简明释义

低息货币政策

英英释义

例句

1.The government hopes that the cheap money policy will lower unemployment rates.

政府希望廉价货币政策能够降低失业率。

2.The central bank implemented a cheap money policy to stimulate economic growth.

中央银行实施了廉价货币政策以刺激经济增长。

3.Critics argue that a prolonged cheap money policy may cause inflation.

批评者认为，长期的廉价货币政策可能会导致通货膨胀。

4.A cheap money policy can lead to increased consumer spending.

一项廉价货币政策可以导致消费者支出的增加。

5.Investors are taking advantage of the cheap money policy to finance new projects.

投资者正在利用廉价货币政策为新项目融资。

作文

The concept of cheap money policy has become increasingly relevant in today's economic discussions. A cheap money policy refers to a monetary policy that aims to lower interest rates, making borrowing cheaper for individuals and businesses. This approach is often implemented by central banks during periods of economic downturn or recession, with the hope of stimulating economic growth by encouraging spending and investment. When interest rates are low, consumers are more likely to take out loans for big purchases, such as homes or cars, and businesses are more inclined to invest in expansion or new projects. One of the primary tools used to enact a cheap money policy is the reduction of the central bank's benchmark interest rate. For instance, when the economy faces challenges, the Federal Reserve in the United States may lower the federal funds rate, which influences the interest rates that banks charge each other for overnight loans. As these rates decrease, banks can offer lower rates to their customers, thus making credit more accessible. However, while a cheap money policy can stimulate short-term economic growth, it also carries potential risks. One significant concern is inflation. When money is cheap and easily available, there is a risk that consumers will spend excessively, leading to an increase in demand that outstrips supply. This imbalance can cause prices to rise, resulting in inflation. Central banks must carefully monitor these trends to ensure that the economy does not overheat. Another potential consequence of a cheap money policy is the creation of asset bubbles. As borrowing becomes more affordable, investors may flock to purchase assets like real estate or stocks, driving up prices beyond their intrinsic value. If these bubbles burst, they can lead to severe economic consequences, including financial crises. Despite these risks, many economists argue that a cheap money policy is necessary during periods of economic distress. For example, following the 2008 financial crisis, central banks around the world implemented aggressive cheap money policies to stabilize their economies. These measures included not only lowering interest rates but also engaging in quantitative easing, where central banks purchase government bonds to inject liquidity into the economy. In conclusion, the cheap money policy is a powerful tool for central banks aimed at stimulating economic growth by lowering interest rates and making borrowing more affordable. While it can lead to positive outcomes such as increased consumer spending and business investment, it is essential to be aware of the potential risks, including inflation and asset bubbles. Policymakers must strike a delicate balance to ensure that the benefits of a cheap money policy do not come at the cost of long-term economic stability. Understanding the implications of this policy is crucial for anyone looking to navigate the complexities of modern economics.

“廉价货币政策”这一概念在当今经济讨论中变得越来越相关。“廉价货币政策”是指旨在降低利率的货币政策，使个人和企业借款更便宜。这种方法通常在经济衰退或萧条时期由中央银行实施，目的是通过鼓励消费和投资来刺激经济增长。当利率较低时，消费者更可能为大宗商品（如房屋或汽车）贷款，而企业也更倾向于投资扩张或新项目。实施“廉价货币政策”的主要工具之一是降低中央银行的基准利率。例如，当经济面临挑战时，美国的联邦储备委员会可能会降低联邦基金利率，这会影响银行之间隔夜贷款的利率。随着这些利率的降低，银行可以为客户提供更低的利率，从而使信贷更易获得。然而，尽管“廉价货币政策”可以刺激短期经济增长，但它也存在潜在风险。其中一个主要问题是通货膨胀。当资金便宜且容易获得时，消费者可能会过度消费，导致需求超过供应。这种不平衡可能会导致价格上涨，从而引发通货膨胀。中央银行必须仔细监测这些趋势，以确保经济不会过热。“廉价货币政策”的另一个潜在后果是资产泡沫的产生。由于借款变得更容易，投资者可能会蜂拥购买房地产或股票等资产，推动价格超出其内在价值。如果这些泡沫破裂，可能会导致严重的经济后果，包括金融危机。尽管存在这些风险，许多经济学家认为，在经济困境时期，“廉价货币政策”是必要的。例如，在2008年金融危机之后，全球各地的中央银行实施了激进的“廉价货币政策”以稳定经济。这些措施不仅包括降低利率，还包括进行量化宽松，即中央银行购买政府债券以向经济注入流动性。总之，“廉价货币政策”是中央银行的一种强大工具，旨在通过降低利率和使借款更可负担来刺激经济增长。虽然它可以带来消费者支出和商业投资增加等积极结果，但必须意识到潜在风险，包括通货膨胀和资产泡沫。政策制定者必须找到微妙的平衡，以确保“廉价货币政策”的好处不会以长期经济稳定为代价。理解这一政策的含义对于任何希望驾驭现代经济复杂性的人来说都是至关重要的。