GLIMS Journal of Management Review
and Transformation
issue front

Taufeeq Ajaz1

First Published 1 May 2023.
Article Information Volume 2, Issue 1 March 2023
Corresponding Author:

Taufeeq Ajaz, Indian Institute of Foreign Trade, Kolkata Campus, Kolkata, West Bengal 700107, India.

1 Indian Institute of Foreign Trade, Kolkata Campus, Kolkata, West Bengal, India

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License ( which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.


This article reviews the central tenants of the New Neoclassical Synthesis of monetary policy. Starting with the optimising behaviour of central banks, this article reviews different theoretical developments like the role of expectations, the Taylor Principle, time-inconsistency, central bank independence and the importance of financial markets for monetary policy. The article concludes by highlighting the challenges faced by policymakers.


Monetary policy, new neoclassical synthesis, inflation, output, expectations


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