Overview
Monetary policy is a vital tool used by central banks to manage the economy by controlling the money supply and interest rates. It aims to achieve economic stability, targeting inflation and unemployment levels. With the rise of digital currencies, including cryptocurrencies and Central Bank Digital...
Key Terms
Example: The Federal Reserve uses monetary policy to influence economic growth.
Example: The European Central Bank manages the euro.
Example: Bitcoin is a popular digital currency.
Example: Ethereum is a well-known cryptocurrency.
Example: High inflation can erode purchasing power.
Example: A lower interest rate can encourage borrowing.
Related Topics
Key Concepts
Central BankInterest RatesInflationCryptocurrency