Most major central banks have shifted their focus from money and reserve targeting to interest-rate targeting.

Question

Quizplus · Accepted Answer

Most major central banks, including the Federal Reserve, the European Central Bank, and the Bank of Japan, have shifted their focus towards targeting interest rates (such as the federal funds rate in the U.S.) as their primary monetary policy tool, moving away from the direct targeting of money supply or reserve quantities. This approach allows them to better manage economic growth and inflation by influencing borrowing costs and economic activity.

Most Major Central Banks Have Shifted Their Focus from Money