EXCERPT FROM THE STUDY
Monetary policy is the set of measures taken by the monetary authority or Central Bank to control the volume, value, and cost of money in a society or an economy with the aim to achieving predetermined macroeconomic goal such as price stability, interest rate stability, exchange rate stability, and economic growth.
Monetary policy can also be said to be the measures taken by the Central Bank to determine the cost, availability and use of money and credit to achieve pre-determined macroeconomic goals.
Friedman (1969) explains monetary policy as the “action taken by the monetary authorities usually the Central Bank to affect monetary and other financial conditions through influence over the availability and cost of credit in pursuit of the broad objectives of sustainable growth of output, price stability and a healthy balance of payments position”.
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