Definitions for monetary policy
mon·e·ta·ry pol·i·cy

WiktionaryRate this definition:4.0 / 1 vote

1. monetary policynoun

   The process by which the government, central bank, or monetary authority manages the supply of money, or trading in foreign exchange markets.

WikipediaRate this definition:0.0 / 0 votes

1. Monetary policy

   Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation's currency. Monetary policy is a modification of the supply of money, i.e. "printing" more money, or decreasing the money supply by changing interest rates or removing excess reserves. This is in contrast to fiscal policy, which relies on taxation, government spending, and government borrowing as methods for a government to manage business cycle phenomena such as recessions. Further purposes of a monetary policy are usually to contribute to the stability of gross domestic product, to achieve and maintain low unemployment, and to maintain predictable exchange rates with other currencies. Monetary economics can provide insight into crafting optimal monetary policy. In developed countries, monetary policy is generally formed separately from fiscal policy. Monetary policy is referred to as being either expansionary or contractionary. Expansionary policy occurs when a monetary authority uses its procedures to stimulate the economy. An expansionary policy maintains short-term interest rates at a lower than usual rate or increases the total supply of money in the economy more rapidly than usual. It is traditionally used to try to reduce unemployment during a recession by decreasing interest rates in the hope that less expensive credit will entice businesses into borrowing more money and thereby expanding. This would increase aggregate demand (the overall demand for all goods and services in an economy), which would increase short-term growth as measured by increase of gross domestic product (GDP). Expansionary monetary policy, by increasing the amount of currency in circulation, usually diminishes the value of the currency relative to other currencies (the exchange rate), in which case foreign purchasers will be able to purchase more with their currency in the country with the devalued currency.Contractionary policy maintains short-term interest rates greater than usual, slows the rate of growth of the money supply, or even decreases it to slow short-term economic growth and lessen inflation. Contractionary policy can result in increased unemployment and depressed borrowing and spending by consumers and businesses, which can eventually result in an economic recession if implemented too vigorously.

WikidataRate this definition:3.2 / 5 votes

1. Monetary policy

   Monetary policy is 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. The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in order to avoid the resulting distortions and deterioration of asset values. Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.

How to pronounce monetary policy?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say monetary policy in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of monetary policy in Chaldean Numerology is: 7

2. Pythagorean Numerology

   The numerical value of monetary policy in Pythagorean Numerology is: 2

Examples of monetary policy in a Sentence

1. William Dudley:

   One thing I think we can say with more confidence is that financial conditions are considerably tighter than they were at the time of the December meeting, so if those financial conditions were to remain in place by the time we get to the March meeting, we would have to take that into consideration in terms of that monetary policy decision.

2. Ryan Sweet:

   The labor market is doing well ... inflation is not going anywhere fast. There is no urgency for the Fed to start normalizing monetary policy, they will likely wait until September.

3. Tharman Shanmugaratnam:

   MAS' monetary policy of a gradual appreciation of the nominal effective exchange rate of the Singapore dollar since 2010 has brought inflationary pressures under control.

4. Stanley Fischer:

   The limited macroprudential toolkit in the United States leads me to conclude that there may be times when adjustments in monetary policy should be discussed as a means to curb risks to financial stability, a more restrictive monetary policy would, all else being equal, lead to deviations from price stability and full employment.

5. Lukman Otunuga:

   Heightened political risk at home coupled with Brexit uncertainty may prompt the BOE to repeatedly delay monetary policy normalization in 2018, if expectations continue to diminish over the central bank raising UK interest rates, sterling is at risk of experiencing heavy losses down the road.

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Monetary_Policy
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Monetary_Policy
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=monetary policy