Question

what is monetary policy

Answer 1

Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity..

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Answer 2

Monetary theory is the method through which the financial administration of a nation, primarily, the central bank or money board, checks either the value of simply short-term financing or the fiscal base, usually targeting an inflation pace or gain rate to secure price balance and overall confidence in the money. In other words, it is a theory of macroeconomics put up by the central bank. it incorporates the supervision of the supply of money and the rate of interest and is the demand faction economic strategy used by the management of a nation to manage macroeconomic aims such as growth, inflation, liquidity and consumption.