Outside the Box
Unconventional Monetary Policy in the Great Recession and Beyond
Bibliographic Data
| ID | 4029644 |
|---|---|
| Authors | Kenneth N Kuttner (0009-0005-3322-0055, Kenneth N. Kuttner is Professor of Economics, Williams College, Williamstown, Massachusetts, and Research Associate, National Bureau of Economic Research, Cambridge, Massachusetts. His email address is ., corresponding author) |
| Year | 2018 |
| Volume | 32 |
| Issue | 4 |
| Pages | 121-146 |
| Publication date | 2018-11-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Journal of Economic Perspectives (JOURNAL) |
| Journal identifiers | ISSN: 0895-3309 • E-ISSN: 1944-7965 |
| Publisher | American Economic Association (PUBLISHER • US) |
| DOI | 10.1257/jep.32.4.121 |
| OpenAlex | W2888917893 |
| Language | EN |
| Citations received | 4 |
| References cited | 20 |
In November 2008, the Federal Reserve faced a deteriorating economy and a financial crisis. The federal funds rate had already been reduced to virtually zero. Thus, the Federal Reserve turned to unconventional monetary policies. Through "quantitative easing," the Fed announced plans to buy mortgage-backed securities and debt issued by government-sponsored enterprises. Subsequent purchases would eventually lead to a five-fold expansion in the Fed's balance sheet, from $900 billion to $4.5 trillion, and leave the Fed holding over 20 percent of all mortgage-backed securities and marketable Treasury debt. In addition, Fed policy statements in December 2008 began to include explicit references to the likely path of the federal funds interest rate, a policy that came to be known as "forward guidance." The Fed ceased its direct asset purchases in late 2014. Starting in October 2017, it has allowed the balance sheet to shrink gradually as existing assets mature. From December 2015 through June 2018, the Fed has raised the federal funds interest rate seven times. Thus, the time is ripe to step back and ask whether the Fed's unconventional policies had the intended expansionary effects-and by extension, whether the Fed should use them in the future
Balance sheet · Business · Central bank · Debt · Economics · Federal funds · Financial crisis · Financial system · Government Debt · Interest rate · Macroeconomics · Monetary economics · Monetary policy · Quantitative easing · Recession · Repurchase agreement · Treasury · Banking stability, regulation, efficiency · Economic Theory and Policy · Monetary Policy and Economic Impact · Finance
Monetary policy surprises and interest rates
Measuring the Macroeconomic Impact of Monetary Policy at the Zero Lower Bound
On the International Spillovers of US Quantitative Easing
What does Monetary Policy do to Long‐term Interest Rates at the Zero Lower Bound
The Federal Reserve's Large‐scale Asset Purchase Programmes
Rewriting Monetary Policy 101
Identification in Macroeconomics
Inside the Black Box
| Unique citing works | 4 |
|---|---|
| Citations per year | 1 |
| Citation span | 2022 - 2025 (4) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 4 |