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What Does 'Monetary Policy' Mean?

Category: Glossary, Type: Other

The Meaing of Monetary Policy

Monetary policy is the discipline of economic policy that controls monetary factors to make sure price stability and economic growth.

It brings together all actions available to monetary authorities 'central banks' to adapt the money market. Across monetary policy, central banks direct the economy to accomplish particular macroeconomic objectives. For this they utilize a number of factors, such as the money provide or cost of money ' interest rates '. Central banks utilize the quantity of money as a variable to arrange the economy.

Across monetary policy, countries seek to affect their economies by controlling the money provide and, in this way, fulfilling their macroeconomic objectives, conserving inflation, unemployment and economic growth at stable values.

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Category: Glossary, Type: Other