Chapter One discusses the role of central banks in our economies, with more emphasis on the U.S. Federal Agency, and their monetary policy to stabilise the economy (correct the business cycle) and satisfy their ultimate objectives: price stability, growth, employment, long-term interest rates, and current account balances. Chapter Two investigates the impact of shocks of Monetary Policy Actions on the real economy and the stock market performance. Chapter Three focuses on analysing monetary policy under high level of eurosation in Serbia.