A Neutral Monetary Policy aims to maintain economic stability without aggressively stimulating or restricting growth. Central banks implement this policy to balance inflation and unemployment, helping sustain a steady economy. By keeping interest rates at neutral levels, the goal is to avoid overheating the economy or causing excessive downturns.The Finance 360 explores how this policy affects markets, inflation, and investment strategies, providing essential insights for investors and business owners looking to understand its impact on the economy.
Neutral Monetary Policy