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 the 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

the policy of the central bank to regulate the availability, cost and use of money and credit for achieving certain given objectives; also known as credit policy