Monetary policy refers to the actions taken by a central bank, such as the Federal Reserve in the United States, to control the money supply and interest rates in order to achieve specific economic goals. These goals typically include stabilizing inflation, promoting full employment, and maintaining stable economic growth. Central banks use various tools, such as setting interest rates, buying and selling government securities, and changing reserve requirements for banks, to influence the availability of money and credit in the economy. Changes in monetary policy can have a significant impact on financial markets, borrowing rates, consumer spending, and overall economic conditions. Research in the field of monetary policy seeks to understand the effects of these policies on the economy and to provide guidance on how to implement effective monetary policies to achieve desired outcomes.