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Economic conditions and monetary policy

Author

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  • Sandra Pianalto

Abstract

In order to set monetary policy appropriately, policymakers need to assess current economic conditions, understand how the economy got to where it is, and have a good idea of where it is heading. Because economic conditions are always in flux, good communications are important to successful policymaking. Communications can help the public appreciate policymakers? objectives, understand their thinking about the prospects for meeting those objectives, and consider how new information might affect policy choices.

Suggested Citation

  • Sandra Pianalto, 2006. "Economic conditions and monetary policy," Economic Commentary, Federal Reserve Bank of Cleveland, issue Jul.
    • Handle: RePEc:fip:fedcec:y:2006:i:jul
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    Keywords

    Monetary policy;

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