4.2.4.3 Central Banks and Monetary Policy (AQA A-Level Economics Teaching PowerPoint)

This teaching powerpoint covers Central Banks and Monetary Policy

Central banks, like the Federal Reserve in the US or the Bank of England, are responsible for managing a country's monetary policy. This involves setting interest rates, printing money, and influencing the money supply in the economy. The primary goal of monetary policy is to keep inflation low and stable while promoting economic growth. To do this, central banks adjust interest rates and the money supply to influence demand in the economy. For example, if inflation is rising, the central bank may raise interest rates to slow down spending and reduce demand for goods and services.