Eurasian Economic Review

, Volume 4, Issue 1, pp 25–43 | Cite as

Monetary policy challenges: how central banks changed their modus operandi

  • Giorgio Di GiorgioEmail author
Original Paper


The financial crisis that started in August 2007 deeply changed the modus operandi of monetary policy on both sides of the Atlantic Ocean and stimulated a debate about how to formally define and practically implement newly relevant objectives, such as systemic stability, in the reaction function of the Monetary Authorities. This paper provides an assessment of the monetary policy decisions and interventions undertaken by the FED and the ECB, and evaluates the respective monetary policy regimes in place before and during the crisis according to the lessons derived from the theoretical literature on monetary policy developed in the last 2 decades.


Monetary policy Central banking Financial crisis 

JEL Classifications

E52 E58 E42 



The author wish to thank Hakan Danis, Stefano Marzioni, Paul Johnson, and an anonymous referee for valuable comments. Any remaining mistake is only to him.


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Copyright information

© Eurasia Business and Economics Society 2014

Authors and Affiliations

  1. 1.Department of Economics and FinanceArcelli Center for Monetary and Financial Studies, Università LUISSRomeItaly

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