What is Monetary policy?
Money & central banksWhat a central bank does to influence inflation and growth, mainly by changing interest rates and the amount of money in the system.
Think of it like: Pressing the brake or the accelerator on the economy.
Real example: In 2022 and 2023 the Fed raised rates from near 0% to over 5% to cool inflation: a "tight" monetary policy.
Lesson: The price of borrowing money Practise it now: Carry Trade Caravan