The study sough to investigate the effects of monetary policy on price stability in Ghana. The study relied on time series model to examine the trend of movement of monetary policy variables (policy rate and money supply) and price stability variables (inflation, exchange rate and commercial lending rate) over a period of 20 years; thus between 2000 and 2020. Linear regression model and pooled regression model were used to test the statistical relationship between monetary policy and price stability. The study showed that money supply had statistically significant positive influence on inflation (β = .403; p < .05). Again, study showed that policy rate had statistically positive effect on inflation with β = 0.333; p < 0.05. The study found no statistically significant association between money supply and exchange rate. The study also found a statistically significant inverse relationship between policy rate and exchange rate with β = -0.338; p < .043. Moreover, the study showed a statistically significant inverse relationship between money supply and commercial lending rate over the 20-year period of analysis. That is, increase in money supply lower interest rate. Although money supply has a positive linear relationship with inflation, however, it was recommended that the government of Ghana through the Bank of Ghana must rely on expansionary money supply approach to achieve price stability. Regardless of the positive association between money supply and inflations, the expansionary approach through economy expansive project increases revenues of households, businesses and individuals. The expansionary money supply approach also increase production thereby maintaining some level of balance between demand and supply. Increase in inflation through expansionary monetary policy always in the short-term. That is, price stability is achieved in the long-turn since expansionary money supply creates long term employment and productive ventures in the economy.