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Glossary Term: MONETARY POLICY

Definition(s) for MONETARY POLICY:


1. ) The regulation of the money supply and interest rates by a central bank, such as the U.S. Federal Reserve, in order to control inflation and stabilize currency.

2. ) Federal Reserve actions to influence the availability and cost of money and credit, as a means of helping to promote high employment, economic growth, price stability, and a sustainable pattern of international transactions. Tools of monetary policy include open market operations, discount policy, and reserve requirements. See also Open Market Operations, Discount Policy, and Reserve Requirements

3. ) A central bank's actions to influence the availability and cost of money and credit, as a means of helping to promote national economic goals Tools of monetary policy include open market operations, discount policy and reserve requirements



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