Some central banks may prefer a target for total domestic bank credit extension (DCE); others may prefer more direct controls over the amount of liquidity in the banking sector; others may set a more direct objective for the level of interest rates.
Be that as it may, the monetary policy model as described above is a consistent model in which fairly stable relationships exist between the various components of the model. Whatever element may be chosen as an anchor for monetary policy, the other components of the model cannot and should not be ignored. 1  BIS Review 31/1999  2.