Monetary policy is the government or central bank process of managing money supply to achieve specific goals—such as constraining inflation, maintaining an exchange rate, achieving full employment or economic growth. Monetary policy can involve changing certain interest rates, either directly or indirectly through open market operations, setting reserve requirements, or trading in foreign exchange markets.
Monetary policy is generally referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy has the goal of raising interest rates to combat inflation.
2006-08-05 03:18:29
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answer #1
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answered by Robb 5
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http://www.automobileinsurancequote.poolcues.be/louisiana-automobile-bill-of-sale/monetory-policy-automobile-industry.html
Did you mean Monetary Policy?
Monetary policy is a central bank's actions to influence the availability and cost of money and credit, as a means of helping to promote national economic goals.
http://woodrow.mpls.frb.fed.us/info/policy/
2006-08-05 10:19:14
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answer #2
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answered by Nickname 5
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Definitions of monetary policy on the Web:
* A central bank's actions to influence the availability and cost of money and credit, as a means of helping to promote national economic goals. Tools of monetary policy include open market operations, discount policy and reserve requirements.
http:// www.tgbr.com/tgbr/terms.html
* Actions by the Federal Reserve System to influence the cost and availability of credit, with the goals of promoting economic growth, full employment, price stability and balanced trade with other countries.
http://www.easierhomeloans.com/glossary/glossary(m).htm
* Monetary policy is a tool by which government can influence the economy by affecting interest rates. In the case of the US, the Federal Reserve Board may choose to increase interest rates thereby slowing the economy and dampening inflation, or decrease interest rates which may stimulate the economy by stimulating investment and consumption.
http://www.nationalpriorities.org/budget/budgetpages/glossary.html
* Policies affecting the money supply, interest rates, and credit availability, that are intended to promote national macroeconomic goals-particularly with respect to employment, gross domestic product, price level stability, and equilibrium in balance of payments. Monetary policy is directed primarily by the Board of Governors of the Federal Reserve System and the Federal Open Market Committee. Monetary policy works by influencing the cost and availability of bank reserves. ...
http://www.senate.michigan.gov/sfa/StateBudget/glossary.html
* Federal Reserve Board decisions on the money supply. To make the economy grow faster, the Fed can supply more credit to the banking system through its open market operations; lower the member bank reserve requirement; or lower the discount rate, which is the rate that banks pay to borrow additional reserves from the Fed. ...
http://www.kingadvisors.com/dictionary/main.html
* refers to the policies of the central bank (Reserve Bank of India) to change the supply of money and the interest rate, and thereby affect economic activity. Governments hope that by regulating the level of money or liquidity in the economy, they will achieve policy objectives like controlling inflation, improving the balance of payments, raising the growth of the Gross National Product, or maintaining a certain level of employment.
http://www3.estart.com/india/finance/budgetglossary.html
* The Federal Reserve Board's plan for regulating the money supply by determining reserve requirements for banks, as well as interest rates and credit policies.
http:// www.tiaa-cref.org/pubs/html/financial_terms/mn.html
* The setting of an appropriate level of the cash rate target by the Reserve Bank of Australia to maintain the rate of inflation in Australia between 2 and 3 per cent per annum on average over the business cycle.
http://www.rba.gov.au/Glossary/text_only.asp
* Federal Reserve actions to influence interest rates or the money supply
http://www.amsouth.com/CBRC/glossary.asp
* The attempt by the Fed to establish a balance in the national income and growth in the economy by controlling the size of the money supply.
http://www.edwardjones.com/cgi/getHTML.cgi
* a policy often implemented by a central bank to control credit and the money supply in the economy, in an attempt to control inflation and stimulate or slow an economy. One tool of monetary policy is the setting of short-term interest rates.
http://www.tdwaterhouse.ca/pcs/pic/glossary.jsp
* A policy followed by the federal government through the Bank of Canada for controlling credit and the money supply in the economy. The policy will vary according to the anti-inflationary or job-creating results the government primarily desires to achieve.
https://www.bmoinvestorline.com/EducationCentre/m.html
* The government’s attempt to achieve macroeconomic objectives by adjusting the quantity of money in circulation and interest rates.
http://www.econ100.com/eu5e/open/glossary.html
* Control over the money supply and interest rate to affect variables such as inflation, employment and production.
http://www.web.net/rain/glossary.htm
* Central Bank activities that influence money supply in order to maximize national production, employment, and/or stabilize prices.
http://www.elissetche.org/dico/M.htm
* government policies which try to influence the economy by changing the amount of money circulating in the economy (money supply) and the interest rate (rate at which people, companies, or the government can borrow money).
http://www.historycentral.com/Civics/M.html
* Regulation of the money supply by the Fed, in order to influence aggregate economic activity; the Fed's role in supplying money to the economy.
http://www.crfonline.org/orc/glossary/m.html
* is a policy designed to influence the value of currency.
http://www.unm.edu/~gleasong/240/econ_terms.html
* The attempt to maintain price stability and the level of the exchange rate (and sometimes, notwithstanding the objections of monetarists, to moderate the business cycle) through control of monetary policy instruments such as money supply and interest rates.
http://www.booksites.net/download/mcaleese/student_files/glossary.html
* The policy framework undertaken by the BOC to improve the performance of the economy. This is done primarily through taking steps that result in higher or lower interest rates.
http://www.mapleleafweb.com/features/economy/bank_canada/glossary.html
* A central bank's management of a country's money supply. Economic theory underlying monetary policy suggests that controlling the growth of the amount of money in the economy is the key to controlling prices and therefore inflation. However, central banks' monetary capability is severely limited by global money movements. This forces them to use the indirect tool of exchange rate manipulation. Back to top
http://www.comerica.com/cma/cda/main/0,00,3_A_2084,00.html
* Changes in interest rates and the quantity of money designed to influence the economy.
http://www.econplace.com/mm5e/glossary.html
* Central government policy with respect to the quantity of money in the economy, the rate of interest and the exchange rate. The importance of monetary policy is much disputed - monetarism as a doctrine holds that is the determinant of aggregate demand, in the short run. Keynes on the other hand held that Fiscal Policy is important, and that monetary policy matters only in as far as it affects fiscal variables, like the public-sector borrowing requirements. (Bannock et al., 1992, 290).
poli.haifa.ac.il/~levi/res/dicpe.html
* Policies of the Federal Reserve System that increase or decrease the supply of money in an effort to achieve designated economic goals.
http://www.gloriabryant.com/glossary.aspx
* The practice used by central banks (eg the Reserve Bank of New Zealand) of adjusting interest rates to influence the availability and cost of money in an economy, ie how easy or difficult it is to obtain money and credit.
http://www.lodestargroup.co.nz/why4.html
* Monetary policy is the process of managing a nation's money supply to achieve specific goals—such as constraining inflation, achieving full employment or more well-being. Monetary policy can involve setting interest rates, margin requirements, capitalization standards for banks or even acting as the lender of last resort or through negotiated agreements with other governments.
en.wikipedia.org/wiki/Monetary_policy
2006-08-05 10:18:15
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answer #3
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answered by Eli 4
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