Central banks always use monetary rules to dictate monetary policy.

Question

Quizplus · Accepted Answer

Central banks use a variety of tools and techniques to implement monetary policy, including interest rate targeting, open market operations, and quantitative easing. While some central banks may use rules to guide their decisions, such as inflation targets or exchange rate targets, there is no requirement for them to do so. Ultimately, the specific approach taken by a central bank will depend on a variety of factors, including economic conditions, political considerations, and the preferences of key decision makers.

Central Banks Always Use Monetary Rules to Dictate Monetary Policy