Monetary policy is a policy adopted by a country's monetary authority which controls either the interest rate payable on very short-term borrowing or the money supply, often targeting inflation or interest rates to ensure price stability and general currency confidence. Unlike fiscal policy, which relies on taxes, government spending and government borrowing as instruments for a government to handle cyclical financial fluctuations such as recessions, monetary policy aims at manipulating the money supply, i.e. 'printing' more money or reducing the money supply by adjusting interest rates or withdrawing excess reserves. More monetary policy goals are generally to contribute to gross domestic product stability, to achieve and sustain low unemployment and to sustain stable exchange rates with other currencies. Monetary economics may provide insight into optimal monetary policy making. Monetary policy in developing countries is usually formed separately from fiscal policy. Monetary policy is known either as expansionary or as contractionary.
Opinion Article: Arabian Journal of Business and Management Review
Opinion Article: Arabian Journal of Business and Management Review
Editorial: Arabian Journal of Business and Management Review
Editorial: Arabian Journal of Business and Management Review
Research Article: Arabian Journal of Business and Management Review
Research Article: Arabian Journal of Business and Management Review
Research Article: Arabian Journal of Business and Management Review
Research Article: Arabian Journal of Business and Management Review
Research Article: Arabian Journal of Business and Management Review
Research Article: Arabian Journal of Business and Management Review
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