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Interest on Reserves monatary

Interest on Reserves monatary
Monetary policy operating procedures have long been debated within the Federal Reserve and among monetary economists at large. For instance, economists have disagreed about whether a central bank should utilize bank reserves or the interest rate as the policy instrument. For the time being at least, the Fed has settled on an interest rate policy instrument and has announced its current federal funds rate target since 1994. The focus on interest rate policy is reflected in the ubiquitous use of the Taylor rule in monetary policy analysis.

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