What central banks do
What central banks do
Monetary policy is the action taken by a central bank to influence interest rates, money and credit, and the exchange rate. Its main UK objective is to keep CPI inflation close to the government's symmetric 2 per cent target.
Step-by-step lessons on AQA A Level Economics 2.4.3 Central banks and monetary policy. Each one builds up to exam-style questions. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.