Monetary policy is a set of actions undertaken by a nation's central bank or monetary authority to control the money supply and credit conditions, aiming to influence macroeconomic outcomes such as price stability, full employment, and economic growth. As a core concept in macroeconomics and a primary tool of economic stabilization, it involves the study and application of various instruments, including interest rate targets, reserve requirements, and open market operations, to manage aggregate demand and mitigate economic fluctuations.