I wouldn't say that they've <i>abandoned</i> monetary policy, it is that their primary tool in the past has been manipulating interest rates. Now that interest rates are effectively zero, they've painted themselves into a corner. Their only other significant tool, loaning money to "member banks" isn't useful because the funds needed to keep the banking industry afloat need to be largely astonishing numbers. I contend that the $700B bailout is just the beginning, and the final butcher's bill will end up being closer to $5T.