Monetary Policy

Monetary Policy, measures employed by governments to influence economic activity, specifically by manipulating the supplies of money and credit and by altering rates of interest.

The usual goals of monetary policy are to achieve or maintain full employment, to achieve or maintain a high rate of economic growth, and to stabilize prices and wages. Until the early 20th century, monetary policy was thought by most experts to be of little use in influencing the economy.

Syndicate content
  • Recommend Us