The monetary policy framework is:

Question

Quizplus · Accepted Answer

The monetary policy framework refers to the set of rules, strategies, and tools used by a central bank to achieve its objectives in the economy. When there are conflicting objectives, such as low inflation and high employment, the monetary policy framework guides the central bank in prioritizing and implementing its objectives in the most effective way possible. Examples include inflation targeting or a Taylor-rule based framework. The monetary policy framework is not the law that created the Federal Reserve System, an idea about interconnected central banks, or a belief in one central bank at the World Bank.

The Monetary Policy Framework Is