## How an expansionary monetary policy can transform the economy
Monetary policy represents one of the most powerful tools in the hands of central banks to guide the economic destiny of a nation. In simple terms, it is the set of decisions that monetary authorities (often the central bank or currency offices) make to control the amount of money in circulation and interest rate levels. The main goal? To keep the economy stable through controlling inflation and growth.
### What happens when the central bank chooses to expand?
An expansionary monetary policy represents the opposite strategy compa