Current Issues in Economics and Finance

Monetary Policy Implementation: Common Goals but Different Practices

Volume 17, Number 72011
JEL classification: E52, E58

Authors: Marlene Amstad and Antoine Martin

While the goals that guide monetary policy in different countries are very similar, central banks diverge in their methods of implementing policy. This study of the policy frameworks of four central banks—the Federal Reserve, the European Central Bank, the Bank of England, and the Swiss National Bank—focuses on two notable areas of difference. The first is the choice of an interest rate target, a standard feature of conventional monetary policy. The second is the choice of instruments for managing the central banks' expanded balance sheets—a decision made necessary by the banks’ unconventional practice of acquiring large quantities of assets during the financial crisis.

PDF full articlePDF 11 pages / 437 kb
Press release
Order this article