Introduction

A monetary policy framework comprises ‘the institutional arrangements under which monetary policy decisions are made and executed’ (McNees, 1987, p. 3). Necessarily, therefore, analysis of any monetary policy framework extends considerably beyond the confines of the central bank. Indeed, only in a few countries is much of the monetary policy framework decided by the central bank itself. Monetary policy frameworks are normally politically determined, and may well depend, for example, on the country’s financial institutions, and the degree of expertise in monetary policy matters that exists both inside and outside the central bank, as well as other institutional economic features.