monetary policy

Cultural  

1. An attempt to achieve broad economic goals by the regulation of the supply of money. (Compare fiscal policy.)

---

Example Sentences

These are difficult questions that go to the heart of monetary policy and the Fed’s role in the economy.

From Barron's • Jun. 12, 2026

Economists have traditionally believed that monetary policy influences the business cycle primarily by encouraging or discouraging investment.

From Barron's • Jun. 12, 2026

TOKYO—The Bank of Japan faces a critical test next week, when it will chart the course for monetary policy in a volatile environment of surging energy prices, persistent yen weakness and building political pressure.

From The Wall Street Journal • Jun. 12, 2026

A calculation of the inflation indicator the Federal Reserve looks closely at also pointed to tighter monetary policy ahead in the U.S.

From The Wall Street Journal • Jun. 11, 2026

The economy now can be thought of as an entity which responds to actions by central banks; we call that monetary policy.

From "The Sense of Style" by Steven Pinker