Monetary policy refers to the actions taken by a Central Bank (ECB) to influence the money supply, interest rates, and availability of credit.
Characteristics of Money
- Durable – money needs to last a long time in circulation.
- Divisible – larger amounts can be broken down into smaller amounts to enable small purchases to be made.
- Recognisable – genuine currency should be instantly recognisable with many identifying characteristics.
- Acceptable – money is legal tender accepted for purchasing all goods and services.
- Portable – money can be easily transported and transferred from one person to another.
- Scarce – to ensure money maintains its value it must be relatively scarce / limited in supply.
- Homogenous – all denominations of money must be identical to each other
How Banks Create Credit
Regulation of Banks
The dark reality of the 2008 financial crash
Irish financial crash documentary
Read the following article on KBC and the interest rate scandal
The European Central Bank
Established in 1998, based in Frankfurt and responsible for formulating and implementing monetary policy in the Eurozone.
Interest Rate
- Interest rates are the price a borrower pays to borrow money and the returns that savers receive for saving.
- Irish consumers pay higher mortgage interest rates compared to other eurozone countries. In 2025, the average rate in Ireland is about 4%, while the eurozone average is lower at 3.59%.
Mortgage Rip-Offs? | Explained By Prime Time