- Actions taken by the Board of Governors of the Federal Reserve System to influence the money supply or interest rates. The New York Times Financial Glossary
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* * *Government policy that deals with total money supply and the general level of interest rates. It has a direct effect on the overall level of economic activity and inflation. Governments often delegate monetary policy implementation to central banks.
* * *monetary policy UK US noun [U]► ECONOMICS actions taken by a government to control the amount of money in an economy and how easily available it is, for example by changing the interest rate: ease/relax/loosen monetary policy »
Relaxing monetary policy left room for currency speculators to make big profits.»
He said the Fed would tighten monetary policy.
Financial and business terms. 2012.
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