An "Easy Money Policy" is a strategy used by central banks, like the Federal Reserve, to stimulate the economy. This policy typically involves lowering interest rates and increasing the money supply, making borrowing cheaper for individuals and businesses. The goal is to encourage spending and investment, which can help boost economic growth. When interest rates are low, consumers are more likely to take out loans for big purchases, such as homes and cars, while businesses may invest in new projects. However, if used for too long, an easy money policy can lead to inflation, where prices rise too quickly, reducing the purchasing power of money.