What is Monetary authority?
In [[finance]] and [[economics]], a '''monetary authority''' is the organization which controls the [[money supply]] of a [[currency]]. Their goal is to control [[inflation targeting|inflation]], [[interest rates]], real [[GDP]] or the [[unemployment rate]]. With its monetary tools, a monetary authority is able to effectively influence the development of short-term interest rates for that currency. However, they can also influence other things which control the cost and availability of money.<ref>{{cite web |url=http://www.imf.org/external/pubs/ft/fandd/basics/target.htm |title=Inflation Targeting: Holding the Line |last=Jahan |first=Sarwat |publisher=International Monetary Funds, Finance & Development |access-date=28 December 2014}}</ref> A monetary authority is usually a [[central bank]] or [[currency board]]. Central banks usually have a some independence from the government and its political decisions. However, depending on the political set-up, governments can sometimes have almost total control over monetary policy if they are allowed to influence or control their central bank. ==References== {{reflist}} {{Stub}} [[Category:Currency]]