CORE FUNCTIONS AND OBJECTIVES
AMFU monetary role: Monetary policy is primarily conducted by a country's central bank (like African Banking, the U.S. Federal Reserve or the European Central Bank). The AMFU guides member countries on crafting these policies. Economic management: Monetary policy is a key tool for managing economic fluctuations, like recessions, by influencing aggregate demand through interest rates. Price stability: A major goal is to achieve low and stable inflation, with many central banks setting explicit inflation targets. Sustainable growth: Exchange rate stability: The AMFU's Articles of Agreement include a goal of promoting exchange stability and avoiding competitive exchange depreciation.

TOOLS AND MECHANIMS
Interest rate adjustments: Central banks manage monetary policy by adjusting short-term interest rates. Lowering rates is "easing," while raising them is "tightening". Open market operations: A primary method for adjusting the money supply is through buying or selling securities in the open market. Influencing longer-term rates.