Reviews of Foreign Central Banks' Monetary Policy Frameworks: Approaches, Issues, and Outcomes

Grey Gordon, Julio L. Ortiz and Benjamin Silk
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Grey Gordon: https://www.richmondfed.org/research/people/gordon
Julio L. Ortiz: https://www.federalreserve.gov/econres/julio-l-ortiz.htm

No 2025-066, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We examine the experience of conducting reviews of monetary policy frameworks in the major advanced foreign economies since the Federal Open Market Committee's 2019–20 review. We find that periodic reviews are becoming the norm and have often been motivated by similar developments and challenges as those facing the Federal Reserve. In some cases, reviews were opportunities to alter numerical inflation objectives or clarify how policymakers balance fostering price stability and supporting employment and activity. In addition, foreign reviews emphasized the need for policy flexibility in pursuit of mandates. They also affirmed the usefulness of central banks' existing policy toolkits, while noting some concerns and limitations. Some reviews offered recommendations to improve communications.

Keywords: Monetary policy review; Monetary policy strategies; Monetary policy tools; Central bank communications; Foreign monetary policy (search for similar items in EconPapers)
JEL-codes: E52 E58 F33 (search for similar items in EconPapers)
Pages: 18 p.
Date: 2025-08-22
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:2025-66

DOI: 10.17016/FEDS.2025.066

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