Monetary Policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment.
Framing the monetary policy is a very complicated and difficult task as balance has to be maintained between different economic variables. A tradeoff usually has to be made between these economic variables. Policymakers often make use of monetary rules like Friedman's k-percent rule or the Taylor rule to design more effective monetary policies.
Read more about this topic: Friedman's K-percent Rule
Famous quotes containing the words monetary and/or policy:
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