Faced with fluctuations in the economy, Central Banks take action to try to maintain balance, that is, when too much money flows, they try to reduce it, and when the flow of money is scarce, they try to increase it. In simple words, the actions that the Central Bank takes for this is monetary policy.
To understand economics and the importance of regulating the amount of money in circulation, it is necessary to understand monetary policy.
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12 сен 2024