WordVale

monetary policy

central bank control of money supply and interest rates

In Banking & Finance

In more detail

the actions a central bank takes to manage the supply of money and interest rates in an economy, in order to influence economic growth, inflation, and employment

Examples

• The Federal Reserve uses monetary policy to control inflation by raising interest rates when prices rise too quickly.

Nearby in Banking & Finance

endowment, exchange rate, fiscal policy, hedge fund, index fund, inflation