This paper was the basis for a keynote lecture at the 41st Annual Conference of the Money Macro and Finance Research Group, Bradford, 7–9 September 2009. We would like to thank Morten Bech, Andrew Filardo, Spence Hilton, David Laidler, Robert McCauley, William Nelson, Francesco Papadia and Tony Courakis for helpful comments. Magdalena Erdem provided excellent research assistance. All remaining errors are ours. The views expressed are those of the authors and do not necessarily represent those of the Bank for International Settlements.
UNCONVENTIONAL MONETARY POLICIES: AN APPRAISAL
Article first published online: 3 AUG 2010
© 2010 The Authors. Journal compilation © 2010 Blackwell Publishing Ltd and The University of Manchester
The Manchester School
Volume 78, Issue Supplement s1, pages 53–89, September 2010
How to Cite
BORIO, C. and DISYATAT, P. (2010), UNCONVENTIONAL MONETARY POLICIES: AN APPRAISAL. The Manchester School, 78: 53–89. doi: 10.1111/j.1467-9957.2010.02199.x
- Issue published online: 3 AUG 2010
- Article first published online: 3 AUG 2010
This paper sets out a framework for classifying and thinking about unconventional monetary 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 characterization of the wide range of central bank responses to the recent 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.