00:01
Hello, so monetary policy, this is going to be a set of actions taken by a country's central bank or monetary authority and it's to control the supply of money.
00:31
So it's one of the key ways a government can influence its economy.
00:35
So how monetary policy affects the various economic aspects.
00:39
So we first have interest banks.
00:42
So central banks use monetary policy to adjust interest rates.
00:56
For example, by lowering interest rates, they can make borrowing cheaper, encouraging spending and investment.
01:03
And then raising rates would do the opposite, cooling the economy.
01:07
And then secondly, for prices, well by influencing the amount of money in circulation, the cost of borrowing, monetary policy can also affect inflation...