Non-standard Monetary Policy Measures and Monetary Developments

Lucrezia Reichlin, Huw Pill, Domenico Giannone and Michele Lenza

No 8125, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Standard accounts of the Great Depression attribute an important causal role to monetary policy errors in accounting for the catastrophic collapse in economic activity observed in the early 1930s. While views vary on the relative importance of money versus credit contraction in the propagation of this policy error to the wider economy and ultimately price developments, a broad consensus exists in the economics profession around the view that the collapse in financial intermediation was a crucial intermediary step. What lessons have monetary policy makers taken from this episode? And how have they informed the conduct of monetary policy by leading central banks in recent times? This paper sets out to address these questions, in the context of the financial crisis of 2008-09 and with application to the euro area.

Keywords: Non-standard monetary policy; Monetary policy shocks; Great recession; Money; Credit (search for similar items in EconPapers)
JEL-codes: E32 E4 E5 (search for similar items in EconPapers)
Date: 2010-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Related works:
Working Paper: Non-standard monetary policy measures and monetary developments (2011)
Working Paper: Non standard Monetary Policy measures and monetary developments (2010)
Working Paper: Non‐Standard Monetary Policy Measures (2010)
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