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What is monetary policy ?

What is monetary policy ? How it is useful in the assessment of the modern economy.

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Question added by Yusuf Dalal , General Accountant. , Gmamco Contracting LLC
Date Posted: 2014/05/10
Maalik Muhamed
by Maalik Muhamed , Deputy Mill Manager , AZANIA GROUP OF COMPANYS

Monetary policy is what central banks use to manage the amount of liquidity in the economy. Liquidity includes cash, credit and money market mutual funds.

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

The regulation of the money supply and interest rates by a central bank, such as the Federal Reserve Board in the U.S., in order to control inflation and stabilize currency. Monetary policy is one the two ways the government can impact the economy. By impacting the effective cost of money, the Federal Reserve can affect the amount of money that is spent by consumers and businesses.

Shamim Khan Dawar
by Shamim Khan Dawar , Group Finance Manager , JAWAHR | Jawa Logistics | Orient Trading(OMATRA)

The regulation of the money supply and interest rates by a central bank, in order to controll inflation and stabilize currency.

Nihala Nazar
by Nihala Nazar , Administration Officer , College of Aviation Technology Kuwait

Anything that is generally accepted as a standard of value and a measure of wealth in a particular country or region.

Yusuf Dalal
by Yusuf Dalal , General Accountant. , Gmamco Contracting LLC

Monetary Policy are the guidelines, Rules, Laws, which are designed by the government to Improve the revenue of the country so as to cover the gap in the  fiscal deficit of the nation. The good monetary policies also takes care of  Economic Development, Development of the Trade and Commerce (Local as well as Import & Export) , Improve the standard of living of the society, Providing subsidies to the Citizen below the poverty line, Social Welfare etc

Waqas Raza Khan
by Waqas Raza Khan , Accountant , Cold Store Group of Saudi Arabia

  1.  The process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.

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