Monetary Easing is the policy in which a central bank lowers interest rates and deposit ratios to make credit more easily available. This policy is used to stimulate economic growth when inflation is low, and unemployment is high.Some economists argue that monetary easing is ineffective because it does not address the underlying structural problems in the economy. Others argue that it can be effective in certain circumstances, such as when there is a large demand for loans, but banks are unwilling to lend money at reasonable interest rates.There are pros and cons to monetary easing, but one thing is clear: it can be a powerful tool for stimulating economic growth. In the right hands, it can help reduce unemployment and increase inflationary pressure. But if misused, it can lead to higher levels of debt and inflationary bubbles.
