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Monetary Policy

In: The Changing Role of Central Banks

Author

Listed:
  • Dimitris N. Chorafas

Abstract

Developing a monetary policy for the country is the central bank’s most important duty. It sets the beat of the economy, impacts the currency’s foreign exchange, could (but should not) fire up inflation, and affects income and expenditures, particularly in the private sector. It does all that by influencing the stock of money as well as the cost and availability of borrowed funds through interest rate(s).

Suggested Citation

  • Dimitris N. Chorafas, 2013. "Monetary Policy," Palgrave Macmillan Books, in: The Changing Role of Central Banks, chapter 3, pages 57-81, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-33228-8_4
    DOI: 10.1057/9781137332288_4
    as

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