Keister, Todd; Martin, Antoine; McAndrews, James - London School of Economics and Political Science - 2008
Monetary policy has traditionally been viewed as theprocess by which a central bank uses its influence overthe supply … the money supply. Theprimary focus of monetary policy has instead become the valueof a short-term interest rate. In the … prevail in the federalfunds market, where overnight loans are made amongcommercial banks. The tools of monetary policy are …