The FED’s Strategy on a Targets-based Monetary Policy Framework


  • Florian Gerth Asian Institute of Management, Makati, Manila, Philippines
  • Yiyang Bian Faculty of Business, University of Wollongong in Dubai, Dubai, UAE



Monetary Policy; Inflation Targeting; Zero Lower Bound; Alternative Monetary Policy Frameworks


Major economic and financial contractions usually go hand-in-hand with muted inflation. This has been true for the Great Depression, the Global Financial Crisis, as well as the Covid-19 crisis. In this paper, we theoretically highlight and discuss the evolution of instruments and approaches monetary-policy decision makers at the Federal Reserve have in lifting inflation to desired levels in times of the zero-lower bound, paying particular focus on more rigorous developments like asymmetric average inflation and temporary price-level targeting.


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How to Cite

Gerth, F., & Bian, Y. . (2023). The FED’s Strategy on a Targets-based Monetary Policy Framework. Financial Economics Letters, 2(1), 22–29.