Policy
Expansionary monetary policy refers to actions taken by a central bank to stimulate economic growth by increasing the money supply and lowering interest rates. Common tools include reducing the federal funds rate, purchasing government securities (quantitative easing), and lowering reserve requirements for banks. Following the 2008 financial crisis, central banks worldwide implemented expansionary monetary policies to support economic recovery, including near-zero interest rates and large-scale asset purchases. These policies lowered borrowing costs across the economy, making capital-intensive investments like renewable energy projects more attractive by reducing financing costs and improving project economics. The extended period of low interest rates from 2008-2021 contributed to significant growth in renewable energy deployment and infrastructure investment globally.