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Conducting Monetary Policy at Very Low Shorter Interest Rates By BEN S. BERNANKEANDCan monetary policy committees, accustomed to describing their plans and actions in terms of the level of a short
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Conducting monetary policy refers to the actions taken by a central bank to control the money supply, interest rates, and inflation in an economy.
Conducting monetary policy is the responsibility of the central bank in a country. In the United States, for example, the Federal Reserve is tasked with conducting monetary policy.
Conducting monetary policy involves a variety of tools and strategies, such as setting interest rates, implementing open market operations, and issuing regulatory guidelines. The specific methods used may vary depending on the country and central bank.
The purpose of conducting monetary policy is to promote price stability, low inflation, and sustainable economic growth. Central banks aim to achieve these objectives by managing the money supply and influencing interest rates.
The information reported on conducting monetary policy may include the central bank's target interest rates, changes in the money supply, inflation data, and economic forecasts. Additionally, central banks often provide detailed explanations of their policy decisions and the reasoning behind them.
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