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Monetary Policy

Related terms: monetary policy, economic indicators, inflation risk, liquidity, quantitative easing

What is Monetary Policy in the context of Family Offices

Monetary policy refers to the actions taken by a central bank to regulate the money supply and interest rates in an economy. For family offices, understanding monetary policy is crucial as it influences investment decisions, asset allocation, and risk management strategies. Changes in monetary policy can affect inflation rates, currency values, and economic growth, all of which impact the performance of a family office’s investment portfolio.