Monetary policy
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Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
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See also
- Forward guidance
- Interaction between monetary and fiscal policies
- Interest on excess reserves
- Macroeconomic model
- Monetary conditions index
- Monetary reform
- Monetary transmission mechanism
- Negative interest on excess reserves
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