 HESITANT ATTEMPTS TOWARDS NORMALIZING MONETARY POLICIESLucian C. Ionescu
Journal of Financial and Monetary Economics, 2017, vol. 4, issue 1, 149-153 Abstract: The 2007- 09 crisis was initially called the Great Recession and afterwards the Great Financial Crisis, thus being implicitly acknowledged the determinant role of nominal/monetary economy in igniting the crisis of the real economy. So there has been no ‗accident‘ that the so-called unconventional monetary policies (UMP) were the main tools used to stimulate financial and – hopefully – economic recovery. They have basically consisted in extremely low policy interest rates (zero or even negative) and an unprecedented enlargement of central banks‘ balance sheets. In principle, UMP were considered a temporary measure, useful for a couple of years. The prolonged stagnant recovery that followed the crisis has kept UMP in place for almost a decade (at least until 2017). This obvious abnormality for a ‗free market‘ capitalist economy should have stopped long ago. Our study tries to analyze the peculiarities of this situation and the pros & cons for ‗normalizing‘ monetary policies. Keywords: unconventional monetary policies (UMP); quantitative (and qualitative) easing; nominal and real interest rates; central banks‘ balance sheets and unwinding balance sheets (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:vls:rojfme:v:4:y:2017:i:1:p:149-153 Access Statistics for this article More articles in Journal of Financial and Monetary Economics from Centre of Financial and Monetary Research "Victor Slavescu" Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.