28: Monetary Policy Last updated Jan 4, 2021 Save as PDF 27.3: Creating Money 28.1: Introduction to Monetary Policy Page ID4523 BoundlessBoundless ( \newcommand{\kernel}{\mathrm{null}\,}\) Topic hierarchy28.1: Introduction to Monetary PolicyIn economics, the demand for money is the desired holding of financial assets in the form of money (cash or bank deposits).28.2: Monetary Policy ToolsThe reserve ratio is the percentage of deposits that a bank is required to hold in reserves, or funds that are not allowed to be loaned.28.3: Impacts of Federal Reserve PoliciesChanges in a country’s money supply shifts the country’s aggregate demand curve.28.4: Historical Federal Reserve PoliciesPaul Volcker, the 12th Chairman of the Federal Reserve, became known for lowering the inflation rate and achieving price stability.