Question

what's main difference between traditional(conventional. and untraditional（unconventional）monetary policy

Answer 1

Conventional monetary policy controls interest rates directly. As in Fed can increase or decrease fed rate directly then it would be called comventiocon method.

In unconventional method , Fed will buy bonds from the market and as demand of bonds increase , their yield decreases and thus cost of borrowing decreases . So this makes interest rates to decrease and it serves the same aim as that of conventional method above. Its just that it take other route to increase or decrease interest rate, rather directly affecting it.