A "cheap money policy" is an expansionary monetary policy where the central bank lowers interest rates and increases the money supply to stimulate economic activity. This increased liquidity and lower borrowing costs can lead to increased spending and investment, potentially increasing the inflation rate.
Money policy increases the inflation rate is known as
Asked in westbengal/WBCS Main 2019 Paper 5 2019 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
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