The monetary policy framework is:

Question

Quizplus · Accepted Answer

The monetary policy framework refers to the decision-making framework used by central banks to implement their objectives, especially when their objectives are in conflict or competition. It is a way to prioritize and implement the central bank's objectives. The other choices are incorrect: A is incorrect because the law that created the Federal Reserve System is not the same as the monetary policy framework; B is incorrect because while central banks do cooperate and coordinate policies, the idea of interconnectedness across countries is not a comprehensive definition of the monetary policy framework; D is incorrect because there is no growing belief that there should be one central bank headquartered at the World Bank.

The Monetary Policy Framework Is