Monetary policy is concerned with the money supply to the economy, interest and the amount of credit available to households and firms.
Posts tagged as “central bank”
The government can slow down economic growth by decreasing its own government spending, through higher TAXes and increasing interest rates.
Government intervention may either support business activity to speed up economic growth or restrain it to slow down the economy.
Monetary Policy deals with the supply of money in the economy. It is concerned primarily with decisions about interest rates.
Inflation changes the value of money over time – it lowers it. One of the government’s economic objectives is to keep inflation low and stable.