easy money

easy money

A condition of the money supply in which the Federal Reserve permits substantial funds to accrue in the banking system, thereby cutting interest rates and facilitating the acquisition of loans. In the resultant period when borrowing is relatively easy and inexpensive, security prices may be initially stimulated. But an extended period of easy money eventually may depress security values as investors begin to fear inflation. Compare tight money. Also called cheap money.

easy money

Money obtained readily, with little effort and, often, illegally. For example, Winning the lotterythat's easy money! or I was wary of making easy money with the insider tips I'd been given. [c. 1900] Also see fast buck.