Monetary policy guides inflation and economic growth. Learn what it means, the main types, and how central banks manage interest rates and stabilize the economy.

It is no secret that we have been fighting inflation that reached a 40-year high and the Federal Reserve Bank has embarked on a historic interest rate increase to combat inflation. Not only have they ...

Explore how fiscal policy and monetary policy drive aggregate demand, influencing economic growth through spending, taxation, and money supply changes.

Monetary policy is perhaps the most pivotal driver impacting foreign exchange (forex) because it influences the currencies in circulation. Following the Federal Reserve’s announcement of hike rates to ...

Since the federal funds rate peaked at 22% in the early 1980s, inflation in the United States has remained low and stable, leading many to believe that the mere threat of renewed interest-rate hikes ...

We incorporate incumbent innovation in a Keynesian growth framework to generate an endogenous distribution of market power across firms. Existing firms increase markups over time through successful ...

Using flow of funds and high frequency data from the Investment Company Institute, we study the effects of monetary policy shocks on the size of non-bank assets as well as on flows into long-term ...