Monetary Stimulus

Monetary stimulus is a strategy used by central banks to boost the economy, especially during downturns. They do this by lowering interest rates or buying financial assets, which injects more money into the economy. Lower interest rates make borrowing cheaper for businesses and consumers, encouraging spending and investment. This increased activity helps stimulate economic growth, create jobs, and combat unemployment. Essentially, monetary stimulus aims to make money more accessible, fostering confidence in financial markets and supporting overall economic recovery.