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Economics Reference and Data Sources: Federal Reserve, Central Banks, and Money

Federal Reserve of the United States

Central Banks and Banking


Introduction to Monetary Policy

"Monetary policy refers to the tools that central banks—centralized financial institutions of countries or regional organizations such as the European Union—use to influence the money supply, or the amount of money in an economy. Central banks use these tools because they want to keep inflation—rising prices in an economy—increasing but in check, and maximize employment."