Why Should I Care about Monetary Policy?

Monetary policy influences your daily life, a person who takes out a mortgage for a loan must be aware if the cash rate is high or low and how to determine the best time to buy their home. Someone who has money in their bank account must be aware of how much their money is appreciating and making for them. In extreme cases we can observe citizens of Denmark earn money as their loan is being slowly paid off by the banks themselves. Monetary policy’s most impactful moments are in times of great strife and turmoil where the RBA urges you to spend more or save, we as a people should be concerned about how our investments in stocks or homes will change as the economic situation of the country changes. The articles that are written are aimed to explain why and how monetary policy functions, limitations will be explained to provide the reader with the understanding of the need of other support needed within the economy. While emerging monetary ideas will be explained to provide the reader with an understanding of how their lives may change in the future.

Finally, the only real reason why someone should care about monetary economics is to understand the world in a more comprehensive way. How is cash provided to banks? How does money influence our society? These are all questions where their answers may seemingly have no tangible advantage to ones life, but to build a greater understanding of the world and the fragile systems that can be appreciated when understood.