monetary policy frameworks

Monetary policy frameworks are strategies used by central banks to manage a country's economy by controlling the money supply and interest rates. They aim to maintain stable inflation, support economic growth, and ensure employment. Different frameworks, like inflation targeting or monetary aggregates, guide how central banks set policies, such as adjusting interest rates or buying/selling government bonds. By doing so, they influence borrowing, spending, and investment, helping to keep the economy balanced and resilient to shocks.