Economics A-Level
Independent monetary policy
What Independent monetary policy means in Economics A-Level, as defined for AQA.
Definition of Independent monetary policy
Check what you remember
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Reference: AQA
The ability of a country to set its own domestic interest rates to manage inflation, which is lost on joining a currency union.
Topics that use Independent monetary policy
- Exchange rate systems (AQA A-Level)
Related terms
- Appreciation
- Asymmetric economic shock
- Balance of payments
- Currency union
- Depreciation
- Fixed exchange rate systems
- Floating exchange rate systems
- Freely floating exchange rate system
Using Independent monetary policy in the exam
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