The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Monetary Policy

  • David E. Lindsey
  • Henry C. Wallich
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_749

Abstract

The term monetary policy refers to actions taken by central banks to affect monetary and other financial conditions in pursuit of the broader objectives of sustainable growth of real output, high employment, and price stability. The average rate of growth of the stock of money in circulation has been viewed for centuries as the decisive determinant of overall price trends in the long run. General financial conditions associated with money creation or destruction, including changes in interest rates, also have been considered for some time an important factor of business cycles.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • David E. Lindsey
    • 1
  • Henry C. Wallich
    • 1
  1. 1.