Ongoing Trends for Central Banks’ Strategy

Abstract

It is recognized that the global financial crisis, with its immediate influences, has led to major changes in the central banks’ policy, but that longer-term effects have still put monetary policy strategies on important challenges related to the way in which they can be adapted to the post-crisis environment. This article aims at identifying options for the monetary policy strategy in the future, starting from highlighting the post-crisis adjustments of central banks’ monetary policy. To this end, we apply the comparative analysis between central banks, both from developed countries and emerging ones. The results shows that although there is not a valid universal solution, the monetary policy strategies can be adjusted taking into account the features of both the forecast-inflation targeting strategy and the integrated inflation targeting strategy. The latter one implies to explicitly extend the central bank’s responsibility by including the financial stability objective into the monetary policy strategy.

Keywords

• unconventional tools; inflation expectations; nominal anchor; post-crisis period