Review:
Monetary Policy
overall review score: 4.5
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score is between 0 and 5
Monetary policy refers to the process by which a central bank manages the supply of money, often targeting an inflation rate or interest rate to ensure price stability and economic growth.
Key Features
- Interest rate manipulation
- Open market operations
- Reserve requirements
- Communication strategies
Pros
- Can stimulate economic growth
- Helps control inflation
- Provides stability to the financial system
Cons
- Can be difficult to predict outcomes
- May have unintended consequences on different sectors of the economy