How does monetary policy play a role in disaster management?

How does monetary policy play a role in disaster management?

Step 1: Understand what monetary policy is. It is how a country's central bank controls the money supply and interest rates.
Step 2: Recognize that disasters can harm the economy by causing damage and reducing people's ability to work.
Step 3: Learn that after a disaster, the government may want to help the economy recover quickly.
Step 4: Know that one way to help the economy is by lowering interest rates. This makes borrowing money cheaper.
Step 5: When interest rates are lower, people and businesses are more likely to take loans to rebuild and invest.
Step 6: As people spend more money, it helps the economy grow and recover from the disaster.

Monetary Policy – The process by which a central bank manages the money supply and interest rates to influence economic activity.
Disaster Management – Strategies and actions taken to prepare for, respond to, and recover from disasters.
Economic Recovery – The process of restoring the economy to a stable state following a disaster.