monetary policy
Definition
The regulation of the money supply and interest rates by a central bank, such as the Federal Reserve Board in the U.S., in order to control inflation and stabilize currency. Monetary policy is one the two ways the government can impact the economy. By impacting the effective cost of money, the Federal Reserve can affect the amount of money that is spent by consumers and businesses.
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Related Terms
tight monetary policy, easy monetary policy, fiscal policy, velocity
'monetary policy
' appears in the definitions of these terms on BusinessDictionary.commacroeconomics, monetary regime, monetary union, moral suasion, national rate of unemployment, and 
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