Board of Governors of the Federal Reserve System

The links below open a sequence of short notes on the principles of sound monetary policy and central banks' practices in setting and implementing monetary policy. The notes are intended to be read in order. The references cited in the footnotes provide additional detail.

Monetary Policy: What Are Its Goals? How Does It Work?

Historical Approaches to Monetary Policy

Principles for the Conduct of Monetary Policy

Policy Rules and How Policymakers Use Them

Challenges Associated with Using Rules to Make Monetary Policy

Monetary Policy Strategies of Major Central Banks