Chancellor George Osborne has revealed the government will use credit easing to direct money towards small businesses.
In his speech to the Conservative Party Conference today, Osborne said the strategy will improve long term investment in small businesses.
"David Cameron and I have always said we will be fiscal conservatives and monetary activists," Osborne said.
Credit easing is the outright purchase of private securities, such as corporate bonds, by a central bank.
This is different from quantitative easing, which is the expanding of base money in circulation through the purchase of government bonds.
The chancellor also attacked Labour's division of businesses into "producers" and "predators", claiming it is a "completely unworkable idea".
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