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What is monetary policy? Monetary Policy is the regulation of the money supply and interest rates by a central bank in order to control inflation and stabilize currency. This policy influences the borrowing and spending of loan. The objective for monetary policy is to try and establish economic growth with stable prices. The United States monetary policy affects not only all kinds of economic and financial decisions which are like applying a loan to buy …

…Conclusion The influence of Monetary Policy is wide and truly complicated. For example, Japan's economy has been recovering gradually for a few years, but, the unemployment rate was not improving as we expected. This year, most of economists assume that the Bank of Japan would raise the interest rate, however, the deflation continues. The announcement of Sumitomo Chemical seems to be truly positive for not only Japan's economy but also international trade and diplomatic effort.