monetary policy
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.
monetary policy is in the Banking, Commerce & Finance and Economics, Politics, & Society subjects.
monetary policy appears in the definitions of the following terms:
adjustments,
reflationary policy,
Federal Reserve System (The Fed),
structural inflation,
national rate of unemployment,
stagflation,
economic forces,
stabilization policy,
econometrics,
monetary regime
and
monetary policy appears in these other term: tight monetary policy
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