Financial Policy

Definition ∞ Financial policy encompasses the strategies and regulations governments and central banks implement to influence financial markets and the broader economy. This includes monetary policy, fiscal policy, and regulatory oversight aimed at controlling inflation, promoting economic growth, and maintaining stability. It directs the flow of capital and credit. Such policies shape the economic landscape.
Context ∞ News frequently reports on how financial policy decisions, particularly those concerning interest rates or inflation, impact the valuation and adoption of digital assets. Discussions often center on the tension between traditional financial systems and the decentralized nature of cryptocurrencies. A critical future development involves the adaptation of financial policy to account for the increasing prominence of digital currencies and blockchain technologies.