why is monetary policy important to the economy?

Monetary policy is important to the economy because it helps keep things balanced. When the economy is booming, it can be tempting to print and spend a lot of money, but this can cause prices to rise and make it harder for people to buy what they need. On the other hand, if there isn't enough money in circulation, businesses may struggle to stay afloat and people may not have enough money to purchase goods and services. Monetary policy helps strike the right balance between too little money in the economy and too much money, so that everyone can have what they need without prices getting too high.