Monetary authority is a generic term in finance and economics for the entity which controls the money supply of a given currency, and has the right to set interest rates, and other parameters which control the cost and availability of money. Generally a monetary authority is a central bank, though often the executive branch of a government has de facto control over monetary policy by controlling the central bank. There are other arrangements, for example democratic governance of monetary policy, a central bank for several nations, a currency board which restricts currency issuance to the amount of another currency, free banking where a broad range of entities can issue notes or coin.
Famous quotes containing the words monetary and/or authority:
“In our time, the curse is monetary illiteracy, just as inability to read plain print was the curse of earlier centuries.”
—Ezra Pound (1885–1972)
“I repeat that in this sense the most splendid court in Christendom is provincial, having authority to consult about Transalpine interests only, and not the affairs of Rome. A prætor or proconsul would suffice to settle the questions which absorb the attention of the English Parliament and the American Congress.”
—Henry David Thoreau (1817–1862)