What monetary policy is
What monetary policy is
Monetary policy is the use of interest rates and money supply to influence spending, borrowing, saving, investment, inflation, growth and employment. In the UK, the Bank of England is the central bank, and it uses Bank Rate to help meet the government's CPI inflation target of 2%.
Step-by-step lessons on OCR GCSE Economics 3.6 Monetary policy, covering 3.6.1 What is monetary policy, 3.6.2 Monetary policy and macro objectives, and 3.6.3 Effects of monetary policy. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.