A monetary authority is the institution that regulates a country’s currency and money supply, generally with the goal of managing inflation, interest rates, real GDP, or the unemployment rate.
A monetary authority can use its monetary instruments to successfully affect the evolution of short-term interest rates, but it can also impact other factors that determine the cost and availability of money.
A monetary authority is a government agency, or agencies, responsible for controlling the supply of money in a given nation.
A common example is a central bank, although governments can set up their money supply in a number of ways.
Sometimes, the executive branch has control over available supplies of currencies, and in other cases, multiple agencies may work together to act as a monetary authority.
This agency employs economists, analysts, and policymakers to make sound decisions about fiscal policy with the goal of promoting economic health.
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