The Fed commonly uses three tools to implement its monetary policy: reserve requirements, the discount rate, and open market operations. Xiaojie Liu / Investopedia. Understanding Monetary Policy .

Monetary policy is the actions taken by a central bank to promote economic growth, stabilize prices, and control the money supply.

What Are the 3 Main Monetary Tools of the Federal Reserve? The Federal Reserve's three primary monetary tools are reserve requirements, the discount rate, and open market operations.

Central banks use monetary policy tools to influence the money supply, interest rates and the overall economic environment. ... Types of monetary policy. There are two main types of monetary policy: ...

Monetary policy strategies and the use of tools like forward guidance and quantitative easing must accordingly be refined. The monetary policy strategies implemented in the post-GFC period by the ECB ...