CREDIT EASING

Monetary policy implemented by central banks to make debt securities more readily available in times of financial crisis. It aims to inject liquidity into a country’s banking system and escalate lending availability to stimulate the economy. In the United States, their policy tools giving loans to financial institutions, provide liquidity directly to major credit makers, and obtaining longer-term securities. The Federal Reserve placed those tools in 2009 to reduce interest rates and make credit more available to entities although its funds are close to zero.