Monetary Policy

What Does Monetary Policy Mean?
The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates.

Investopedia explains Monetary Policy
In the United States, the Federal Reserve is in charge of monetary policy.

Related Terms

Accomodative Monetary Policy
Discount Rate
Fed Funds Rate
Federal Reserve
Fiscal Policy
Monetary Base
Money Supply
Open Market Operations
Quantitative Easing
Tight Monetary Policy
More Related Terms

Related Links

The Importance Of Inflation And GDP - Learn the underlying theories behind these concepts and what they can mean for your portfolio.
The Treasury And The Federal Reserve - Find out how these two agencies create policies to stimulate the economy in tough economic times.
How Interest Rate Cuts Affect Consumers - Traders rejoice when the Fed drops the rate, but is it good news for all? Find out here.
Using Consumer Spending As A Market Indicator - What people buy and where they shop can provide valuable information about the economy.
The New World Of Emerging Market Currencies - Take advantage of foreign currency markets without stepping out of your house.
How Much Influence Does The Fed Have? - Find out how current financial policies may affect your portfolio's future returns.
The Federal Reserve: What Is The Fed? - The Fed was created to study and implement monetary policy in the U.S. Learn how here.
Formulating Monetary Policy - Learn about the tools the Fed uses to influence interest rates and general economic conditions.
Microeconomics - This tutorial teaches the basics of one of the most important economic topics. A must for all investors.
Get To Know The Major Central Banks - The policies of these banks affect the currency market like nothing else. See what makes them tick.
What Are Central Banks? - They print money, they control inflation, and much, much more. All you need to know about central banks is here.
Currency Carry Trades Deliver - This strategy can provide returns even if the pair doesn't move a cent.
How do central banks inject money into the economy?

Get a new investing term in your inbox each day!

- join our Term of the Day!