monetary policy, history of

Today monetary policy is the principle way in which governments influence the macroeconomy To implement monetary policy the monetary authority uses its policy instruments (short-term interest rates or the monetary base) to achieve its desired goals of low inflation and real output close to potential. Monetary policy has evolved over the centuries, along with the development of the money economy. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.