PATAKARANG PANANALAPI EXPANSIONARY MONEY POLICY

CONTRACTIONARY POLICY​

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Monetary policy refers to the activities of the national central bank. The purpose of monetary policy is to ensure the stability of money. Monetary stability is usually considered to be the stability of the price level and the controllability of the inflation rate.

Monetary policy can be expansionary or contractionary, depending on whether the objective is to increase the amount of money in circulation (through lower interest rates, for example) or to reduce it (by increasing interest rates, issuing money, etc.) .