Monetary policy in the United States comprises the Federal Reserve’s actions and communications to promote maximum employment, stable prices, and moderate long-term interest rates–the economic goals the Congress has instructed the Federal Reserve to pursue.
Monetary Policy Principles and Practice
The links below open a sequence of short notes on the principles of sound monetary policy and central banks’ practices in setting and implementing monetary policy. The notes are intended to be read in order. The references cited in the footnotes provide additional detail.
Monetary Policy: What Are Its Goals? How Does It Work?
Historical Approaches to Monetary Policy
Principles for the Conduct of Monetary Policy
Policy Rules and How Policymakers Use Them
Challenges Associated with Using Rules to Make Monetary Policy
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