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Before we can begin to understand how monetary policy is implemented, we must examine the functions and role of money . We can then explore the special role that
central banks play in today’s economies.
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2. Monetary Policy
As stated above, monetary policy refers to government or central bank activities that are directed toward influencing the quantity of money and credit in an economy. Before we can begin to understand how monetary policy is implemented, we must examine the functions and role of money . We can then explore the special role that central banks play in today’s economies.
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