Definition

Noun: - Credit available at low rates of interest: "Cheap money" refers to a monetary policy condition where loans and credit are easily accessible with low interest rates, often set by a central bank to stimulate economic activity.

Usage Examples

• Noun:
  • The central bank's policy created a period of cheap money, encouraging businesses to invest in new projects.
  • Homebuyers benefited from cheap money, securing mortgages with historically low interest rates.

Advanced Usage

• Economic Context: The term is often used in financial and economic discussions to describe a deliberate policy environment.
  • Analysts warned that prolonged cheap money could lead to asset bubbles.
• Historical Reference: Can refer to specific periods in economic history.
  • The era of cheap money following the financial crisis lasted for nearly a decade.

Variants and Related Words

• Easy money (noun): A closely related term often used synonymously to describe credit that is readily available and inexpensive to obtain.
• Loose monetary policy (noun phrase): The broader economic policy stance that results in cheap money.

Synonyms

• Low-cost credit
• Inexpensive financing

Related Phrases

• Cheap money policy (noun phrase): The specific strategy of maintaining low interest rates.
  • The government's cheap money policy aimed to boost consumer spending.

Noun

1. credit available at low rates of interest