monetary policy

Cultural  

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

---

Example Sentences

Massabni says this points to a “low-growth, high-inflation” environment, the most challenging scenario for both monetary policy and equity valuations.

From MarketWatch • Apr. 1, 2026

“It keeps markets in a constant state of anticipation, as any unexpected deviation, whether toward a deeper slowdown or higher inflation, could significantly alter monetary policy expectations,” he says.

From MarketWatch • Apr. 1, 2026

Economists warn a zero percent inflation target risks deflation, reduces monetary policy flexibility, and could lead to economic downturns.

From Barron's • Mar. 31, 2026

And such a target would also likely reduce the Fed’s monetary policy flexibility.

From Barron's • Mar. 31, 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