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What is Understanding Monetary Policy Tools about?
Monetary policy refers to the process by which a central bank controls the supply of money in an economy in order to promote economic growth and achieve goals such as maximum employment, stable prices, and moderate interest rates. There are two main types of monetary policy: expansionary policy aims to increase the money supply by lowering interest rates, while contractionary policy aims to decrease the money supply by raising interest rates. The major tools of monetary policy include open market operations
- Author
- sajjad
- Language
- EN