Arguments for monetary policy are that it controls inflation through a target interest rate; is quick and easy to implement; ...

The Federal Reserve has been using quantitative easing and quantitative tightening to conduct monetary policy. The approach has been effective in achieving the Federal Reserve's goals. The strong ...

Quantitative easing (QE) is a non-traditional monetary policy tool used by central banks, particularly when interest rates are already low and cannot be reduced further. It was popularized during the ...

Fed balance sheet expands as securities held outright rise $2.7B weekly and $89.6B since December 2025, reversing QT. Read ...

AI does not exert a uniform impact across monetary policy environments. The effect of AI appears strongest in lower quantiles of monetary policy performance, where conditions are weaker or less stable ...

The Federal Reserve tightened monetary policy rapidly between 2021 and 2023. In addition, a weekly proxy federal funds rate shows that markets perceived the policy stance as tightening significantly ...

This paper investigates the impact of monetary policy on capital misallocation, focusing on its heterogeneous effects on firms. Using Spanish firm-level data spanning 1999 to 2019, we demonstrate that ...

Monetary policy influences inflation dynamics by exerting impact on a diverse array of commodity prices. At high frequencies, we show that a 10 basis points increase in US monetary policy rate reduces ...

Last month, the Bank of Japan (BOJ) took its first step in the ‘normalisation’ of monetary policy. It raised the Bank’s short-term policy interest rate from negative 0.1 per cent to 0–0.1 per cent and ...

The European Central Bank will make clear in future whether it’s deploying unconventional tools to steer the monetary-policy stance or ensure smooth transmission, Governing Council member Francois ...