MONETARY POLICY: The Federal Reserve System's use of the money supply to stabilize the business cycle. As the nation's central bank, the Federal Reserve System determines the total amount of money circulating around the economy. In principle, the Fed can use three different "tools"--open market operations, the discount rate, and reserve requirements--to manipulate the money supply. In practice, however, the primary tool employed is open market operations. To counter a recession, the Fed would undertake expansionary policy, also termed easy money. To reduce inflation, contractionary policy is the order of the day, and goes by the name tight money.

     See also | Federal Reserve System | money | business cycle | stabilization policies | central bank | open market operations | discount rate | reserve requirements | Federal Open Market Committee | tight money | easy money | fiscal policy | interest rate | inflation | unemployment | expansionary monetary policy | contractionary monetary policy |

MONETARY POLICY, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: November 19, 2018].

Additional information on this term can be found at:

WEB*pedia: monetary policy

Back to the GLOSS*arama

A table that illustrates the alternative quantities of a commodity demanded at different prices. A demand schedule is a simple means of summarizing information about demand price and quantity demanded for a particular good. It is used to highlight the law of demand. It can also be used to derive a demand curve.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time at a flea market seeking to buy either a brown leather attache case or car battery jumper cables. Be on the lookout for telephone calls from long-lost relatives.
Your Complete Scope

This isn't me! What am I?

-- Max DePree, executive

User Feedback