said of credit available to the public through the banking system when the Federal Reserve allows bank credit to expand. When the Federal Reserve allows reserves to accumulate, interest rates are stable, if not declining. Easy money policies could encourage economic growth and, eventually, inflation, if carried out for a sustained period. Contrast with tight money .

state of the national money supply when the Federal Reserve System allows ample funds to build in the banking system, thereby lowering interest rates and making loans easier to get. Easy money policies tend to encourage economic growth and, eventually, inflation.