Accommodative Monetary Policy

When a central bank (such as the Federal Reserve) attempts to expand the overall money supply to boost the economy when growth is slowing (as measured by GDP). This is done to encourage more spending from consumers and businesses by making money less expensive to borrow by lowering the interest rate. Furthermore, the Federal Reserve also has the authority to purchase Treasuries on the open market to infuse capital into a weakening economy.

Also known as an "easy monetary policy".

Investopedia Says:
The Federal Reserve adopted an accommodative monetary policy during the late stages of the bear market that began in late 2000. When the economy finally showed signs of a rebound, the Fed eased up on the accommodative measures, eventually moving to a tight monetary policy in 2003.

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Federal Reserve policy to increase the amount of money available for lending by banks. When the Fed implements an accommodative policy, it is known as easing the money supply. During a period of easing, interest rates fall, making it more attractive for borrowers to borrow, thereby stimulating the economy. The Fed will initiate an accommodative policy when interest rates are high, the economy is weak, and there is little fear of an outbreak of inflation. Once interest rates have been lowered enough to stimulate the economy, the Fed may become concerned about inflation again and switch to a Tight Money policy. See also Monetary Policy.