Expansionary refers to policies or actions aimed at stimulating economic growth. This often involves increasing government spending or lowering interest rates to encourage borrowing and investment. The goal is to boost demand for goods and services, which can lead to higher employment and increased production. In the context of monetary policy, central banks like the Federal Reserve may implement expansionary measures to combat economic downturns. By making money more accessible, these policies can help revive a sluggish economy and promote overall financial stability.