Open Access Letter

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

by Florian Gerth a,* orcid  and  Yiyang Bian b
Asian Institute of Management, Makati, Manila, Philippines
Faculty of Business, University of Wollongong in Dubai, Dubai, UAE
Author to whom correspondence should be addressed.
FEL  2023, 8; 2(1), 8;
Received: 1 April 2023 / Accepted: 18 May 2023 / Published Online: 21 June 2023


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.

Copyright: © 2023 by Gerth and Bian. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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ACS Style
Gerth, F.; Bian, Y. The FED’s Strategy on a Targets-based Monetary Policy Framework. Financial Economics Letters, 2023, 2, 8.
AMA Style
Gerth F, Bian Y. The FED’s Strategy on a Targets-based Monetary Policy Framework. Financial Economics Letters; 2023, 2(1):8.
Chicago/Turabian Style
Gerth, Florian; Bian, Yiyang 2023. "The FED’s Strategy on a Targets-based Monetary Policy Framework" Financial Economics Letters 2, no.1:8.
APA style
Gerth, F., & Bian, Y. (2023). The FED’s Strategy on a Targets-based Monetary Policy Framework. Financial Economics Letters, 2(1), 8.

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