Comparative analysis of the monetary policies applied during 2022-2023: United States and Eurozone
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This paper analyzes the behavior of the Federal Reserve (Fed) and the European Central
Bank (ECB) concerning their interest rate decisions from the beginning of 2022 until 2023.
The primary goal of the policies implemented was to lower the elevated inflation rates
generated after the COVID-19 crisis and the start of the Russian invasion of Ukraine. Both
had to change their monetary strategies and put into place a restrictive one, which involved
hiking their interest rates. The methods these banks have employed, as well as their intensity
and timeliness, have differed. Although not just as a result of the monetary policies used,
inflation has decreased. The decline in energy costs is one of several reasons that have
contributed to lower prices. The unemployment rate has remained low, and the economies
are still expanding, although more slowly