Standard Elements of a Monetary Policy Implementation Framework

From newyorkfed.org

In the minutes of the July 2015 Federal Open Market Committee (FOMC) meeting, the chair indicated that Federal Reserve staff would undertake an extended effort to evaluate potential long-run monetary policy implementation frameworks. But what is a central bank’s monetary policy implementation framework? In a series of four posts, we provide an overview of the key elements that typically constitute such a framework. The main source for this post is a paper from the Bank for International Settlements (BIS) on Monetary Policy Frameworks and Central Bank Market Operations, which gives an overview of Basel ... (full story)