2  BIS Review 9/2005  In view of the growing complexities of macroeconomic management, several central banks including the European Central Bank have placed reliance on a broad set of economic and leading indicators rather than focusing exclusively on an intermediate target or a direct inflation target.
The Federal Reserve has traditionally been following a more broad based approach to the conduct of monetary policy in the US. Operating procedures: instruments and targets Operating procedures refer to the day-to-day implementation of monetary policy by central banks through various instruments. These instruments can be broadly classified into direct and indirect instruments.