Monetary Authority

A Monetary Authority is an institution responsible for managing a country’s money supply, interest rates, and overall financial stability. It often operates independently from the government and aims to control inflation, stabilize currency, and foster economic growth. The most well-known example is a central bank, like the Federal Reserve in the United States, which sets policy tools to influence the economy, such as adjusting interest rates or regulating banks. Essentially, the Monetary Authority plays a crucial role in ensuring that the economy runs smoothly and effectively.