
Currency expansion
Currency expansion refers to the process where a country's central bank increases the total amount of money in circulation. This can be done by creating more money through various methods, such as lowering interest rates or buying financial assets. The goal is to stimulate economic activity by making borrowing cheaper and encouraging spending and investment. However, excessive expansion can lead to inflation, where prices rise and the value of money decreases. It’s a balancing act, used to support growth while avoiding the negative effects of too much money in the economy.