Central Banking after the Great Recession in U.S.: a new normal?
Pages 169 - 174
Abstract
This paper firstly evaluates the use of two unconventional monetary policies (UMPs), forward guidance and quantitative easing, with their strengths and effective applications respectively. Besides, factors that influence the effectiveness of the two policies are being analyzed, thereby allowing us to predict how their effectiveness will be in a foreseeable future according to the changes in the factors. In this work, we find out that these factors have reduced the effectiveness of the two UMPs recently. Due to its weakened effectiveness, we made a conclusion that the two policies should not be considered as ‘a new normal’.
References
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Raskin, Matthew D. (2013). The Effects of the Federal Reserve's Date based Forward Guidance. Federal Reserve Board, Washington, D.C.
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Nakata, Taisuke, and Takeki Sunakawa (2019). “Credible Forward Guidance,” Finance and Economics Discussion Series 2019-037. Washington: Board of Governors of the Federal Reserve System, https://doi.org/10.17016/FEDS.2019.037.
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Andrade, Philippe, Gaetano Gaballo, Eric Mengus, and Benoît Mojon. 2019. “Forward Guidance and Heterogeneous Beliefs.” American Economic Journal: Macroeconomics, 11 (3): 1-29.
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Krishnamurthy, A. and A. Vissing-Jorgensen. (2011). The effects of quantitative easing on interest rates: channels and implications for policy. Brookings Papers on Economic Activity, 215.
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- Central Banking after the Great Recession in U.S.: a new normal?
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Published In
June 2021
174 pages
ISBN:9781450389600
DOI:10.1145/3474880
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Association for Computing Machinery
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Published: 01 December 2021
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ICEBT 2021
ICEBT 2021: 2021 5th International Conference on E-Education, E-Business and E-Technology
June 18 - 20, 2021
Beijing, China
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