We often hear in the news that, stock market is volatile, consumer confidence is falling rapidly, the housing market remains to be solid, and the unemployment rate is rising and so on. Monetary policy is esigned to solve above-mentioned problems by pursuing the right policy objectives, assessing the economic outlook and taking the right policy actions.

But it is not always easy to monitor the incoming statistics and remain ready to take appropriate policy actions. It is a fact that, monetary policymakers always face these three challenges. But overcoming these challenges does not guarantee a successful implementation of monetary policy. In this respect, several aspects of global economic integration, which have remarkable effect on the way monetary policy is conducted, should be considered as well.

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