Meaning & use
monetary policy
The actions a central bank takes to control the money supply and interest rates in order to influence the economy.
See it in a sentence
The central bank raised interest rates as part of its monetary policy to slow inflation.
Economists debated whether the new monetary policy would help or hurt small businesses.
A note on using this word
Monetary policy is set by a central bank, while fiscal policy involves government taxing and spending decisions; the two are often confused.
Words with a similar meaning
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