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Monetary Policy

Monetary policy is the process by which a central bank or other financial authority manages the supply of money and credit in the economy in order to achieve its economic objectives. Monetary policy may involve a variety of tools, such as setting interest rates, manipulating the money supply, or engaging in open market operations. Continue Reading Below

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Discover the definition of financial terms related to monetary policy.

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About Monetary Policy

Monetary policy is the process by which a central bank or other financial authority manages the supply of money and credit in the economy in order to achieve its economic objectives. Monetary policy may involve a variety of tools, such as setting interest rates, manipulating the money supply, or engaging in open market operations.