Abstract/Summary

This article aims to provide a dense and accessible nontechnical overview of the new developments in monetary policy after the Global Financial Crisis (GFC) of 2007-2009. The discussion is structured in four sections explaining in a condensed form four broad types of episodes in the world economy and corresponding developments in monetary policy, namely the responses to (1) the GFC, (2) climate change, (3) the COVID-19 pandemic, (4) Russia’s war in Ukraine and the cost-of-living crisis of 2022 it exacerbated. Four figures, central to the tasks of monetary policy, illustrate the evolution of interest rates, inflation, output growth and unemployment.