Monetary Policy

Definition

Monetary policy is the process by which the monetary authority of a country controls the supply of money for the purpose of promoting economic growth and stability.

Related terms

Inflation: The rate at which the general level of prices for goods and services is rising.

Deflation: Reduction of the general level of prices in an economy.

Interest Rates: The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.