Abstract
The global crisis of 2007–09 led central banks to employ an array of traditional and non-traditional monetary policy tools. Many central banks cut policy rates to levels close to zero, and a few of them provided explicit forward guidance about the anticipated future path of policy rates. Some followed a quantitative easing strategy, while others took actions aimed specifically at improving conditions in private credit markets. Finally, with signs of economic recovery becoming evident, central banks refined their exit strategies for unwinding these extraordinary policy measures.
Authors
- Giancarlo Corsetti
- Andrew Levin
- Frank Smets
- Carl Walsh