Monetary Policy Framework

Abstract

This section discusses monetary policy, covering the basic theories and concepts of monetary policy, monetary policy frameworks, and the evolution of monetary policy from the period before the 1997/98 Asian financial crisis to the period after the 2008/09 global financial crisis (GFC). The ITF can, on the whole, still be relied on as a monetary policy strategy. However, due to a background of problems, especially those that emerged after the 2008/09 global financial crisis, various central banks need to strengthen their monetary policy framework through the application of a non-strict framework, or flexible ITF, with efforts to jointly stabilize inflation and the real economy in the short term.