Accommodating policy (适应性政策)

Accommodating policy (适应性政策 shì yìng xìng zhèng cè) is used to boost the economy when economic growth is slow. The common methods include increasing the money supply and lowering interest rates. For example, facing a possible economic recession, the central bank decides to implement a policy that lowers short-term interest rates. This will encourage spending since it is less expensive to borrow, which raises aggregate demand and stimulates economic growth to counteract the effect of a recession.

But in the Chinese context “ease policy” (宽松政策 kuān sōng zhèng cè) is more wildly used. A similar example is “quantitative easing” (量化宽松 liàng huà kuān sōng). In most cases “适应性” (shì yìng xìng) refers to “adaptive” in Chinese. See “Adaptive expectations”.

Part 1: Breakdown of Words:

Part 2: Examples:

  1. Accommodating Monetary Policy (适应性货币政策 shì yìng xìng huò bì zhèng cè).


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