Definition
Economic strategy chosen by a government in deciding expansion or contraction in the country's money-supply. Applied usually through the central bank, a monetary policy employs three major tools: (1) buying or selling national debt, (2) changing credit restrictions, and (3) changing the interest rates by changing reserve requirements. Monetary policy plays the dominant role in control of the aggregate-demand and, by extension, of inflation in an economy. Also called monetary regime. See also monetarism.
Related Articles
- Introduction to Banking *
- Market Timing Strategy of Buying Stock *
- Prospectuses, Annual Reports, and Other Documents *
- Understanding Homeowner's Insurance Policies *
- Municipal Bonds *
- Rearranging a Portfolio with ETFs *
- Introduction to the Economy, Fiscal and Monetary Policy *
- Common Stock Strategies - Part 2 *
Related Videos
http://www.businessdictionary.com/definition/monetary-policy.html
