Monetary policy is the decisions made by central bank to affect the quantity of money in the country. While making monetary policy decisions, the objective of government is to achieve and maintain full employment without causing inflation. When a slowdown occurs in economic activities and economy signals an upcoming recession, central bank will decide to raise money supply and decrease the interest rates. Specifically, monetary authorities (institutions responsible for implementing the monetary policy, primarily central bank) will facilitate the availability of credits. This kind of monetary policy is named as loose or expansionary monetary policy. On the other hand, if economy recovers more than required and there are signs of inflationary threats, monetary authorities would decide to slowdown the money supply and to increase interest rates. This kind of monetary policy is named as tight or contractionary monetary policy.