Macroeconomic Policy

Definition ∞ Macroeconomic policy refers to government and central bank actions designed to influence the overall economy, including monetary policy (interest rates, money supply) and fiscal policy (government spending, taxation). These policies aim to achieve objectives such as economic growth, price stability, and full employment. Their impact can significantly influence traditional markets and, by extension, the digital asset space. Understanding these policies helps interpret broader market movements.
Context ∞ The current discourse on macroeconomic policy in relation to digital assets often centers on how inflation and interest rate adjustments affect cryptocurrency valuations. A key debate involves the extent to which digital assets act as a hedge against traditional financial instability versus their correlation with broader risk-on assets. Future developments will likely involve ongoing regulatory responses to the increasing intersection of digital assets with global financial systems.