# Monetary Policy

*Macro & Economy — Finicade finance glossary*

How a central bank steers the economy by moving interest rates and the money supply — cutting rates to stimulate, raising them to cool inflation. It's the main lever for keeping prices stable and employment high.

**Also known as:** monetary and fiscal policy

**Related terms:** [Central Bank](https://finicade.com/glossary/central-bank), [Interest Rate](https://finicade.com/glossary/interest-rate), [Inflation](https://finicade.com/glossary/inflation), [Quantitative Easing](https://finicade.com/glossary/quantitative-easing)

**Taught in:** Charter Climb — Macro, Cycles & Currencies

Source: https://finicade.com/glossary/monetary-policy