monetary policy

policy of a country or central bank in regards to money, amount of involvement which a government has on the market activity by influencing the level of export

Monetary policy is the process by which the government, central bank, or monetary authority manages the supply of money, or trading in foreign exchange markets.  Monetary theory provides insight into how to craft optimal monetary policy.Monetary policy is generally referred to as either being an expansionary policy, or a contractionary policy, where an expansionary policy increases the total supply of money in the economy, and a contractionary policy decreases the total money supply. Expansionary policy is traditionally used to combat unemployment in a recession by lowering interest rates, while contractionary policy has the goal of raising interest rates to combat inflation (or cool an otherwise overheated economy). Monetary policy should be contrasted with fiscal policy, which refers to government borrowing, spending and taxation.
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Actions taken by the Board of Governors of the Federal Reserve System to influence the money supply or interest rates.

the regulation of the money supply and interest rates by a central bank, such as the Bank of England in the UK and Federal Reserve Board in the U.S., in order to control inflation and stabilize currency.