expansionary
B1Pronunciation
UK
- /ɛkspˈænʃənəri/
US
- /ɪkˈspænʃəˌnɛri/
- /ɪkˈspæntʃəˌnɛri/
Description
- promoting growth
- broadening
- increasing
- stimulative
Imagine blowing up a balloon—that's expansion in action! But "expansionary" isn't just about physical size; it usually describes policies or plans, especially in economics, designed to encourage growth. Think of an "expansionary monetary policy." This is when a central bank increases the money supply to boost the economy, much like adding air to that balloon to make it grow.
Beyond the world of finance, it can also refer to plans or actions meant to widen reach or increase activity. A company might pursue expansionary plans by opening new branches and hiring more staff. A government might take an expansionary approach to public spending to support jobs and demand. It's all about the active process of making something larger in scale or effect, whether it's a business, a budget, or the economy itself.
The term "expansionary" describes something that promotes growth, broadening, or an increase in scale. While it is most frequently used to discuss economic strategies, it applies to any deliberate effort to make something larger, more inclusive, or more active.
In the realm of economics, an "expansionary policy" refers to actions taken by policymakers to stimulate a sluggish economy. This typically involves lowering interest rates to make borrowing cheaper or increasing government spending to put more money into the hands of consumers and businesses. For instance, a government might adopt an expansionary fiscal policy during a recession to jumpstart activity. The goal is always to move the needle toward more growth and higher employment.
However, the word's reach extends beyond finance. It can also describe plans or actions that widen the scope of an organization or activity. A tech startup might announce expansionary goals as it moves into international markets. A company might follow an expansionary strategy by adding products, offices, or services in order to grow its presence.
The key takeaway is that "expansionary" signals a proactive move toward greater size or activity. It isn't just about something being big; it's about the intentional push to make it bigger, wider, or more active.
Examples
- 1
Government budget
The government adopted an expansionary budget to support the economy during the recession.
- 2
Monetary policy
Lower interest rates are part of an expansionary monetary policy.
- 3
Inflation risk
Some economists worry that expansionary policies can push inflation higher if they continue for too long.
- 4
Central bank stance
After months of weak growth, the central bank signaled a more expansionary stance.
Forms and spellings
1 form open this card.
Main spelling
- expansionary