The phrase "active monetary policy" is correct and usable in written English.
It can be used when discussing economic strategies employed by a government or central bank to influence the economy through adjustments in the money supply and interest rates.
Example: "The central bank implemented an active monetary policy to stimulate economic growth during the recession."
Alternatives: "proactive monetary policy" or "dynamic monetary policy".
We'll use active monetary policy to stimulate demand where necessary".
Such bank behavior is often prohibited in developing countries, so we investigate an active monetary policy that compensates banks for withdrawn deposits.
Its new head, Mario Draghi, rejects the idea that it should be a lender of last resort, and Germany — without whose support the bank can do nothing — has opposed a more active monetary policy at every turn.
But the great economic lesson of the 20th century was that to work, a market system needs a little help from the government: regulations to prevent abuses, active monetary policy to fight recessions.
Cameron told MPs: "What we need to do both in Britain and Europe is to combine deficit reduction, which has given us the low interest rates, with an active monetary policy, with structural reforms to make us competitive, and with innovative ways of using our hard-won credibility, which we wouldn't have if we listened to the muttering idiots sitting opposite me".
Well, the answer is that (a) it wasn't in a liquidity trap and (b) we had an active monetary policy response (in fact, before 1990 monetary policy generally caused the slumps, so all the Fed had to do was stop the punishment).
Active monetary policies supported continuing growth in North America and most of Europe until 2007 (although critics charged that reliance on monetarist pro-market policy increased economic inequality and forced more people into poverty).
We can hence single out the role of automatic stabilization which is not possible in an ex-post evaluation (or with macro data) as it is not possible to disentangle the effects of automatic stabilizers, active fiscal and monetary policy and behavioral responses like changes in labor supply or benefit take-up.
"Most participants saw changes in the target for the federal funds rate as the preferred active tool for tightening monetary policy when appropriate," the minutes said.
"If we had not adopted a pro-active fiscal policy and prudent monetary policy," he said, "the Chinese economy would have collapsed".
He also spoke positively about suggestions that monetary policy could play a wider active role in managing the economy, "especially in times of crisis".
