In contrast, an instrument-based approach involves providing the public information about how the monetary policy committee plans to vary its policy instrument – typically, a short-term interest rate, like the federal funds rate – in response to economic conditions. See Svensson (2003).
Amando M Tetangco, Jr: Implementing responsive monetary and banking policies Keynote address by Mr Amando M Tetangco, Jr, Governor of the Central Bank of the Philippines (Bangko Sentral ng Pilipinas), at the 2008 Awarding Ceremony for BSP Stakeholders, Manila, 11 July 2008. *  *  *  Distinguished partners from the private and the government sectors, special guests, good morning!