Monetary policy
Understand the Problem
The question is asking for information related to monetary policy, which refers to the actions and strategies employed by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives.
Answer
Monetary policy involves central bank actions on interest rates and money supply to influence economic conditions.
Monetary policy involves actions taken by a country's central bank to influence economic conditions, primarily through the management of interest rates and the money supply. Its main objectives include promoting economic growth, achieving price stability, and maintaining employment levels.
Answer for screen readers
Monetary policy involves actions taken by a country's central bank to influence economic conditions, primarily through the management of interest rates and the money supply. Its main objectives include promoting economic growth, achieving price stability, and maintaining employment levels.
More Information
Monetary policy can take the form of expansionary or contractionary actions, depending on whether the central bank is trying to stimulate the economy or curb inflation.
Sources
- Monetary Policy Meaning, Types, and Tools - Investopedia - investopedia.com
- Monetary Policy and Central Banking - IMF - imf.org
- Monetary policy - Wikipedia - en.wikipedia.org
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