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Why does the central bank have to be concerned with money growth even though their main...

Why does the central bank have to be concerned with money growth even though their main focus seems to be on interest rates?

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Growth of money refers to the volume of money supply in the economy . Money supply in the economy is directly related to price level . The important function of the central bank is to implement monetary policy to stabilize the price level or control inflation . So money growth is an important concern for central bank . Not only interest rates but also open market operations can alter money growth alongwith foreign investment , grants etc . These are also monitored by the central bank .

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