The more open an economy is, the more the external sector plays a dominant role in monetary management. The second factor that plays a major role is the stage of development of markets and institutions: with technological development as an essential ingredient. In a developed economy, the markets are integrated and policy actions are quickly transmitted from one sector to another.
Like other central banks, the Fed began by boldly lowering its standard monetary policy instrument, the federal funds rate, as low as it could go.