However, the recovery in the economy and the resilience of inflation highlight the issue of how long such an expansionary policy will remain appropriate.

However, he explained that he was wary of the risks of such an expansionary policy.

An expansionary policy increases the size of the money supply more rapidly, or decreases the interest rate.

Expansionary policy rises the stock prices of the firm, which increases the net worth of the company.

Similarly, it can be argued that when expansionary policy rises the stock prices, it automatically also rises the value of the financial wealth of a household and consumption will increase.