Understanding unconventional monetary policy: a new monetarist approach

• Autores: Stephen D. Wiliamson
• Localización: Revista de economía, ISSN 0797-5546, Vol. 18, Nº. 2, 2011, págs. 43-70
• Idioma: inglés
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• Resumen

  • This paper focuses on Federal Reserve policy in the United States after the financial crisis. Three key interventions - QE1, QE2, and forward guidance - are reviewed, and a model is outlined that can be used to help understand some of the consequences of the financial crisis, and the policy responses to the crisis. Liquidity traps play an important role in the analysis, and it is shown how the financial crisis led to an unconventional liquidity shortage, requiring an unconventional policy response.