MONETARY POLICY

650 WD

The term 'Monetary Policy ' refers to what the Federal Reserve (Fed) and the National Central Bank does to influence the amount of money and the credit of the U.S. Economy. What happens to money and credit affects the interest rate and the performance of our economy. The definition of the Monetary Policy is the regulation of the money supply and interest rates by the central bank and the Federal Reserve Board, in order to control inflation and stabilize the currency. The Monetary Policy is one way the government can impact the economy. The goals of the Monetary Policy is to maximize employment, stabilize prices and moderate interest rates. The Monetary Policy is the management of