Unconventional monetary policies: an appraisal

Claudio Borio and Piti Disyatat

No 292, BIS Working Papers from Bank for International Settlements

Abstract: The recent global financial crisis has led central banks to rely heavily on "unconventional" monetary policies. This alternative approach to policy has generated much discussion and a heated and at times confusing debate. The debate has been complicated by the use of different definitions and conflicting views of the mechanisms at work. This paper sets out a framework for classifying and thinking about such policies, highlighting how they can be viewed within the overall context of monetary policy implementation. The framework clarifies the differences among the various forms of unconventional monetary policy, provides a systematic characterisation of the wide range of central bank responses to the crisis, helps to underscore the channels of transmission, and identifies some of the main policy challenges. In the process, the paper also addresses a number of contentious analytical issues, notably the role of bank reserves and their inflationary consequences.

Keywords: unconventional monetary policy; balance sheet policy; credit policy; quantitative easing; credit easing; monetary policy implementation; transmission mechanism; interest rates (search for similar items in EconPapers)
Pages: 37 pages
Date: 2009-11
New Economics Papers: this item is included in nep-cba, nep-hpe, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (125)

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Related works:
Chapter: Unconventional monetary policies: a re-appraisal (2018)
Working Paper: Unconventional monetary policies: a re-appraisal (2016)
Journal Article: UNCONVENTIONAL MONETARY POLICIES: AN APPRAISAL (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:292

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