Monetary policy is the use of a government’s control over the supply of money to influence the economy. Current monetary policy involves setting interest rates. When interest rates are low, companies often borrow money to invest in new projects, and individuals often borrow money to finance purchases like homes and cars.
Related Articles:
- GDP: The Rock Star of Economic IndicatorsWord out of Washington, D.C., this week is that GDP is on the rise. What does that mean for the economy and your financial and job prospects? High school economics whiz Robin Li and others demystify the significance of Gross Domestic Product.
- 9 Insights About Negative Interest Rates