Monetary policy primarily aims to maintain price stability by controlling inflation and deflation.

Monetary policy tools include open market operations, reserve requirements, and the discount rate, which are used to influence the money supply and interest rates.

Expansionary monetary policy typically leads to lower interest rates by increasing the money supply.

Monetary policy primarily affects economic growth through investment, as lower interest rates encourage businesses to invest more.

Monetary policy can influence inflation through its impact on economic activity and the money supply.

Hyperinflation refers to a situation where monetary policy is too loose and leads to extremely high inflation rates.

The discount rate is the interest rate at which banks can borrow money from the central bank.

The impact of monetary policy on a country's currency depends on various economic factors and can vary.

An economic recession is a period of decline in economic activity caused by tight monetary policy or other economic factors.

Reserve requirements are the percentage of deposits that banks must hold in reserve.

Monetary policy can influence demand through its impact on interest rates, investment, and economic activity.

Inflation refers to a sustained increase in the general price level caused by loose monetary policy or other economic factors.

Open market operations involve buying and selling government securities in the open market.

Monetary policy can influence unemployment through its impact on economic activity, investment, and demand.

Deflation refers to a sustained decrease in the general price level caused by tight monetary policy or other economic factors.