Monetary policy refers to the actions and decisions taken by a country's central bank or monetary authority to control and regulate the supply of money, interest rates, and credit in order to achieve specific economic goals.
Related terms
Inflation: Inflation refers to the general increase in prices over time, resulting in a decrease in purchasing power.
Federal Reserve: The Federal Reserve (also known as "the Fed") is the central banking system of the United States responsible for implementing monetary policy.
Interest Rates: Interest rates are the percentage charged or paid for borrowing money. They play a crucial role in influencing consumer spending and investment.