economics
monetary policy
Actions by a central bank to control the money supply and interest rates to achieve economic goals.
Example
"The central bank used monetary policy to lower interest rates and stimulate borrowing."
💡 Memory Tip
MONETARY = about money. Monetary policy is the central bank's POLICY about MONEY.
Etymology
Monetary (relating to money) + policy (a plan of action) — the plan for managing the money supply.
Common Misspellings
monetery policymonetary polcymonetray policymonetary pollicy