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Monetary Policy
The process by which a government, central bank, or monetary authority manages the money supply to achieve specific goals, such as controlling inflation, maintaining employment, and stabilizing the currency.
Short-Run Phillips Curve
A curve that illustrates a short-term trade-off between inflation and unemployment, suggesting lower unemployment can come at the cost of higher inflation.
Financial Crisis
A broad term for a situation when financial assets rapidly lose a significant part of their nominal value.
Contractionary Monetary Policy
A central banking strategy involving the increase of interest rates or reduction of the money supply to decrease inflation and slow down economic growth.
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