Monetary Policy: Basics
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Monetary Policy: Basics

Intuition Publishing
Updated Sep 24, 2020

Monetary policy refers to actions undertaken by a central bank to influence the availability and cost of money and credit in an attempt to achieve national economic objectives. We begin by looking at the semantics involved in the study of monetary policy, before explaining how the interaction of money demand and money supply leads to the determination of the equilibrium interest rate.

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