U.S. Monetary Policy: An Introduction
The Federal Reserve Bank of San Francisco has updated and expanded its Q&A reference on monetary policy. This booklet (available online) is an easy-to-understand reference for reporters, academics, business people, students and anyone interested in knowing about how and why the Fed conducts the nation’s monetary policy. It answers a series of questions on the Fed’s structure, policy’s goals and tools, how policy affects the economy, and how the Fed decides the policy settings.

The update of the original 1999 version focuses on the issues involved in making policy in an environment of uncertainty, and also addresses:

• Why might a zero inflation rate not be a good target?
• What's so bad about deflation?
• Why doesn't the Fed try to prick stock market "bubbles"?

U.S. Monetary Policy: An Introduction
Is available on line at:
http://www.frbsf.org/publications/federalreserve/monetary/index.html.

Media outlets are invited to link to this URL, making this resource available to their audiences as well as to their own reporting staff.

Carol Eckert, Media Relations Manager, (415) 977-3853