What term is used for a policy that changes money supply or interest rates to reach economic goals?

The term that refers to a policy aimed at changing the money supply or interest rates to achieve specific economic goals is monetary policy. This type of policy is typically implemented by a country's central bank, such as the Federal Reserve in the United States or the European Central Bank in the Eurozone.

Monetary policy can be classified into two main types: expansionary and contractionary. Expansionary monetary policy aims to increase the money supply and lower interest rates to stimulate economic activity, boost spending, and encourage investment, especially during periods of economic downturn. Conversely, contractionary monetary policy seeks to reduce the money supply and raise interest rates to combat inflationary pressures and stabilize the economy.

In contrast, fiscal policy involves government spending and taxation decisions to influence the economy, while tax policy specifically addresses changes in tax regulations and rates. Regulatory policy pertains to the rules and standards set by governments or authorities to manage economic activity, often focused on specific sectors or industries. Thus, none of these alternatives specifically deal with adjustments to the money supply or interest rates.