Under such a rule, the Federal Open Market Committee (FOMC) may indicate that it will maintain the fed funds rate at current levels until such time as unemployment moves below 7 per cent or inflation above 3 per cent, at which point, the federal funds rate may be raised.
Alongside such unconventional policies in advanced economies, emerging market economies have witnessed a break from past behaviour, where central banks have graduated from conducting pro-cyclical monetary policy to counter-cyclical monetary policy.