Get Access to World’s largest Template Library & Tools

Table of Contents

  1. Policy Template Bundle
  2. 11+ Expansionary Policy Templates in PDF | DOC
  3. 1. Expansionary Monetary Policy
  4. 2. Monetary Policy Too Expansionary
  5. 3. Expansionary Fiscal Policy
  6. 4. Expansionary monetary policy Example
  7. 5. Expansionary Fiscal and Monetary Policy
  8. 6. Expansionary monetary policy drives growth
  9. 7. Basic Expansionary Fiscal Policy
  10. 8. Expansionary and Monetary Fiscal Policy
  11. 9. Sample Expansionary Monetary Policy
  12. 10. Appreciation Expansionary Policy
  13. 11. Monetary turnaround and more expansionary fiscal policy
  14. 12. Monetary Policy to be as Expansionary as Possible Policy
  15. How Does Expansionary Policy Work?
  16. Expansionary Policy Vs Contractionary Policy
  17. Risks of Expansionary Policies

11+ Expansionary Policy Templates in PDF | DOC

Expansionary policy refers to a form of macroeconomic policy designed to foster economic development. This policy may comprise of either monetary or fiscal policy or a mix of both. It is part of Keynesian economics general policy strategy, to be used during global slowdowns and recessions to reduce the risk of economic cycles.

Policy Template Bundle

policy template bundle 788x510
Details
File Format
  • MS Word
  • Google Docs
  • PDF

Download Now

11+ Expansionary Policy Templates in PDF | DOC

1. Expansionary Monetary Policy

expansionary monetary policyecon.iastate.edu
Details
File Format
  • PDF

Size: 4 KB

Download Now

2. Monetary Policy Too Expansionary

monetary policy too expansionarygsb.columbia.edu
Details
File Format
  • PDF

Size: 9 KB

Download Now

3. Expansionary Fiscal Policy

expansionary fiscal policyub.uni-muenchen.de
Details
File Format
  • PDF

Size: 998 KB

Download Now

4. Expansionary monetary policy Example

expansionary monetary policy exampleuleth.ca
Details
File Format
  • PDF

Size: 40 KB

Download Now

5. Expansionary Fiscal and Monetary Policy

expansionary fiscal and monetary policysemanticscholar.org
Details
File Format
  • PDF

Size: 177 KB

Download Now

6. Expansionary monetary policy drives growth

expansionary monetary policy drives growthwirtschaft.de
Details
File Format
  • PDF

Size: 582 KB

Download Now

7. Basic Expansionary Fiscal Policy

basic expansionary fiscal policynber.org
Details
File Format
  • PDF

Size: 434 KB

Download Now

8. Expansionary and Monetary Fiscal Policy

expansionary and monetary fiscal policyinflibnet.ac.in
Details
File Format
  • PDF

Size: 212 KB

Download Now

9. Sample Expansionary Monetary Policy

sample expansionary monetary policymit.edu
Details
File Format
  • PDF

Size: 138 KB

Download Now

10. Appreciation Expansionary Policy

appreciation expansionary policysilverchair.com
Details
File Format
  • PDF

Size: 2 MB

Download Now

11. Monetary turnaround and more expansionary fiscal policy

monetary turnaround and more expansionary fiscal policydbresearch.com
Details
File Format
  • PDF

Size: 127 KB

Download Now

12. Monetary Policy to be as Expansionary as Possible Policy

monetary policy to be as expansionary as possible policyeprints.lse.ac.uk
Details
File Format
  • PDF

Size: 47 KB

Download Now

How Does Expansionary Policy Work?

The fundamental goal of expansionary policy is to raise aggregate demand to compensate for private demand shortfalls. The policy is focused on Keynesian economics theories, especially the idea that a deficit in aggregate demand is the main cause of recessions. This policy is designed to enhance business investment and buyer spending by either direct government deficit spending or increased lending to businesses and consumers injecting money into the economy. From a fiscal policy viewpoint, the government uses budgeting techniques to implement expansionary policies that provide more money to people. Raising spending and reducing taxes to create budget deficits implies that the government is pumping more money into the economy than it takes out. The expansionary fiscal policy entails tax reductions, grants, rebates and increased government spending on programs such as upgrades to roads.

Expansionary monetary policy operates by increasing the money supply more rapidly than average, or by reducing short-term interest rates. The policy is implemented by central banks and is achieved with the help of open market operations, reserve requirements and interest rate-setting.

Expansionary Policy Vs Contractionary Policy

The expansionary policy falls under the category of finance policies. The opposite of this policy is the contractionary policy. By the term itself, expansionary policy is implemented in the economy to increase the supply of money in that economy. On the other hand, the contractionary policy is implemented to decrease the supply of money in that economy. The central bank of a country can make use of wither depending on the economic conditions of that period. The question is how it is determined which policy to use.

The true trend rate, also known as just the trend rate, is an economy’s long-term sustainable real growth pace. That is the pace without inflationary pressures that an economy can achieve. This trend is not measured explicitly and should be calculated. The trend often varies with increasing economic conditions. The neutral interest rate is the rate of growth at which the rate of growth of the money supply remains constant. This means that the actual GDP is rising at the pace of average, and inflation remains steady.

Neutral interest rate = Real trend rate + Inflation target

The discount rate (policy rate) can be related to the neutral interest rate. If the rate of discount is more than the neutral rate of interest, it can be said that the monetary policy is contractionary and vice versa. This implies that the central bank is trying to diminish the money supply in the economy. Monetary policy adjustment usually represents the root of inflation. If inflation is above goal due to an increase in aggregate demand, contractionary policies are acceptable. If not, expansionary policies will be implemented.

Risks of Expansionary Policies

  1. Measuring when to participate in expansionary strategy, how much to do, and when to avoid needs sophisticated analysis and entails significant uncertainties. Too much growth may have serious side effects such as an overheated economy, or high inflation. There is also a delay from when a government change is being taken and when the market is working its way.
  2. The delay between the change and the market working its way makes evaluating up-to-the-minute almost difficult even for the most experienced economists. Cautious central bankers and lawmakers need to know when to stop the growth of money supply, or even reverse course, and turn to a contractionary approach that would involve taking the opposite actions of expansionary policy, such as interest rate hikes.
  3. The expansionary fiscal and monetary policy risks generating microeconomic inequalities through the economy even under ideal conditions. Basic economic designs frequently depict the impacts of expansionary policy as impartial to the economic structure, as if the money injected into the economy were distributed across the economy uniformly and instantly.
  4. Under practical terms, all monetary and fiscal strategies work by providing new money to particular individuals, companies, and sectors who then invest and distribute fresh money to the overall economy. This implies that expansionary strategy often requires an efficient redistribution of buying wealth and power from the earlier beneficiaries to the later recipients of the new money, rather than systematically raising aggregate demand.
  5. The expansionary strategy, like any public policy, is highly vulnerable to knowledge and opportunity issues. Distributing the capital injected into the economy by expansionary policy naturally will entail political considerations. Issues such as lease-seeking and issues with principal officers quickly emerge if large sums of public money become up for grabs. And by extension, the expansionary strategy includes the allocation of large sums of public money, whether fiscal or monetary.

More in Policy Templates

10+ Sample Bullying Policy Templates in PDF | DOC10+ Uniform Complaint Policy and Procedure Templates in PDF
11+ Student Freedom of Expression Policy Templates in PDF10+ Suspension and Expulsion Policy Templates in PDF | DOC
11+ Service Animals on Campus Policy Templates in PDF8+ Instructional Budget Policy Templates in PDF
10+ Suicide Prevention Policy Templates in PDF | DOC10+ Homework Policy Templates in PDF | DOC
10+ Plagiarism/Cheating Policy Templates in PDF | Word10+ Requested Leave Policy Templates in PDF | DOC
11+ Related Personnel Policy Templates in PDF | Word10+ Student Travel Policy Templates in PDF | DOC
10+ Pass/No Pass Policy Templates in PDF | Word9+ High School Credit Policy Templates in PDF | DOC
10+ Cooperative Policy Templates in PDF | DOC10+ Math Placement Policy Templates in PDF | Word
10+ Independent Study Policy Templates in PDF | DOC11+ Administration of Medication Policy Templates in PDF | Word
10+ Internal Complaint Policy Templates in PDF | DOC6+ Min-Max Credit Policy Templates in PDF | DOC
11+ Disenrollment Policy Templates in PDF | DOC10+ Independent Evaluation Policy Templates in PDF | DOC
10+ Concurrent Classes Policy Templates in PDF | Word6+ Education for Foster Youth Policy Templates in PDF | DOC
11+ Fiscal Control Policy Templates in PDF | DOC10+ Education of English Learners (ELL) Policy Templates in PDF | DOC
7+ Conditions for Classroom and School Visitation and Removal Policy Templates in PDF | DOC10+ Field Trip Policy Templates in PDF | DOC
10+ Donation Policy Templates in PDF | DOC9+ Dropping Classes Policy Templates in PDF | DOC
10+ Academic Enrichment Policy Templates in PDF | Word10+ Staff Consultation Policy Templates in PDF | DOC
10+ Tuition Payment Policy Templates in PDF | DOC10+ Fraud Policy Templates in PDF | DOC
10+ Investment Policy Templates in PDF | Word10+ Background and Reference Check Policy Templates in PDF | DOC
FREE 10+ Application Security Policy Templates in PDF | MS Word10+ Background Check Policy and Procedure Templates in PDF | DOC
10+ Pre-Employment Screening Policy Templates in PDF | DOC10+ Retirement Plans for Individuals Templates in PDF | DOC
10+ Social Policy Templates in PDF | DOCFREE 10+ Corporate Social Responsibility Policy Templates in PDF | MS Word
11+ Monetary Policy Templates in PDF | XLS | DOC11+ Expansionary Policy Templates in PDF | DOC
7+ Concentration Risk Policy Templates in PDF | DOC11+ School Equality Policy Templates in PDF | DOC
11+ School Attendance Policy Templates in PDF | WordFREE 11+ System Policy Templates in PDF | MS Word
9+ Nonprofit Investment Policy Templates in DOC | PDF10+ Office Policy Templates in PDF | DOC
10+ Office Environmental Policy Templates in PDF13 Security Policy Templates
10+ Retail Gap Analysis Templates in PDF | DOC10+ Retail Return Policy Templates in PDF | DOC
10+ Retail Health and Safety Policy Templates in PDF | DOC10+ School Data Protection Policy Templates in PDF | DOC
10+ Church Safeguarding Policy Templates in PDF | DOC10+ Charity Whistleblowing Policy Templates in DOC | PDF
12+ Church Facility Use Policy Templates in PDF | DOC10+ Church Health and Safety Policy Templates in PDF | Word
3+ Charity Confidentiality Policy Templates in PDF | DOC6+ Charity Procurement Policy Templates in PDF | DOC
8+ Charity Remuneration Policy Templates in PDF | DOC5+ Charity Pay Policy Templates in DOC | PDF
10+ Charity Application Form Templates in PDF | DOC11+ Charity Equality and Diversity Policy Templates in DOC | PDF
8+ Charity Volunteer Policy Templates in PDF | DOC10+ Charity Donation Policy Templates in PDF | DOC
6+ Charity Fundraising Policy Templates in PDF | DOC5+ Charity Child Protection Policy Templates in DOC | PDF
5+ Charity Marketing Policy Templates in PDF9+ Charity Equal Opportunities Policy Templates in DOC | PDF
7+ Charity Complaints Handling Policy Templates in PDF | DOC7+ Charity Volunteer Management Policy Templates in DOC | PDF
5+ Charity Anti Bribery Policy Templates in PDF | DOC10+ Charity Financial Policies and Procedures Templates in DOC | PDF
6+ Charity Investment Policy Templates in PDF10+ Charity Conflict of Interest Policy Templates in PDF | DOC
9+ Charity Social Media Policy Templates in PDF | DOC6+ Charity Commission Safeguarding Policy Templates in PDF
9+ Charity Financial Policy Templates in DOC | PDF9+ Charity Risk Management Policy Templates in PDF | DOC
5+ Charity Recruitment Policy Templates in PDF | DOC7+ Charity Expenses Policy Templates in PDF | DOC
9+ Charity Reserves Policy Templates in DOC | PDF10+ Charity Complaints Procedure Policy Templates in PDF
11+ Charity Commission Reserves Policy Templates in PDF | DOC9+ Charity Data Retention Policy Templates in PDF | DOC
10+ Charity Privacy Policy Templates in PDF | DOC5+ Charity Safeguarding Policy Templates in DOC | PDF
10+ Charity Data Protection Policy Templates in PDF | DOC5+ Nursing Transfer Policy Templates in PDF
10+ Nursing Policy Templates in PDF | DOCFREE 4+ National Security Policy Templates in PDF | MS Word
FREE 13+ Data Security Policy Templates in PDF | MS Word10+ Corporate Security Policy Templates in PDF | Word
7+ Application Security Policy Templates in PDF | DOCFREE 8+ Security Audit Policy Templates in MS Word | PDF
7+ Security Assessment and Authorization Policy Templates in PDFFREE 10+ IT Security Policy Templates in MS Word | PDF
bottom banner