## What is monetary policy and how does it work in the modern economy?
Monetary policy represents a set of tools that central banks use to influence the money supply and interest rates within an economy. Although it sounds technical, it is fundamentally about how financial authorities try to maintain economic balance by regulating how much money circulates in the economy and at what cost.
### The fundamental objectives behind each decision
When a central bank implements a monetary policy, it seeks to achieve two essential things: to maintain price stability ( by controlling inflation ) and to