The main purpose of monetary policy is to achieve economic growth, maintain a healthy inflation rate which will help in maintaining a robust economic growth and maintain price stability. You can read about the Monetary Policy – Objectives, Role, Instruments in the given link.
Expansionary monetary policy is used when there is recession or economic slowdown.
- Monetary Policy Committee (MPC) – Structure, Objectives UPSC Notes
- Monetary System – Types of Monetary System