Monetary Policy in the Modern Economy

In this class, students will learn about the role of monetary policy in today's economy. Monetary policy is of utmost importance in managing short-term fluctuations in the economy and maintaining price stability. Monetary policy set by central banks transmits through the economy to influence the spending and borrowing decisions of households and businesses. The banking and broader financial markets are key for the transmission of monetary policy. The Federal Reserve and other major central banks, such as the European Central Bank and the Bank of England, have enormous influence around the world.