Monetary policy is a set of tools that a nation’s central bank has to promote sustainable economic growth by controlling the overall supply of money that is available within the economy.

Related Terms

  • Unemployment Rate

  • Supply & Demand

  • Stagflation

  • Recession

  • Money Supply

  • Interest Rates

  • Inflation

  • Gross Domestic Product (GDP)

  • Fiscal Policy

  • Federal Reserve

  • Federal Funds Rate

  • Consumer Price Index (CPI)

  • Business Cycle