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VORADictionaryC1Monetary policy
CEFR C1 — Advanced

Monetary policy

Definition

(formal) The actions of a central bank or government to control the money supply and interest rates in a country, in order to promote economic growth, stability, and low inflation.

Example Sentences

1The central bank's monetary policy decisions have a significant impact on the overall direction of the economy.
2Can you explain how monetary policy affects the value of a country's currency?
3The government has been criticized for its monetary policy, which some argue has led to increased income inequality.
4Monetary policy is often used as a tool to stimulate economic growth during times of recession.
5The Federal Reserve's monetary policy committee meets regularly to discuss interest rates and the money supply.

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