What is monetary policy? What is the role of a central bank? What are its objectives? How does it implement monetary policy? What are the channels through which monetary policy decisions affect the economy?

Why did central banks have to change their monetary policy tools after the 2008 crisis? What new measures did they take to achieve their objectives? These two short animated films describe the mechanisms of monetary policy, both before and after the crisis.

Source: Banque de France – Citéco/Cité de l’économie et de la monnaie

Objectives: Understand the workings of monetary policy and the role played by central banks. The first film describes the tools and transmission mechanisms of monetary policy before the 2008 crisis. The second film describes the new tools, known as unconventional or non-standard, which were implemented by central banks in the aftermath of the financial crisis.

Audience: 14+

Duration: 5’56 for each film

Conventional monetary policy



Unconventional monetary policy

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Published on 03 June 2019. Updated on 01 March 2022