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The Case for Repairing Broken Channels without the Use of Unconventional Monetary Policy

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  • Mardini Patrick

    (Faculty of Business and Management, University of Balamand, PO Box 100, Tripoli, North Lebanon, Lebanon)

Abstract

The paper shows that the literature on broken channels (1) fails to provide an explanation of the root causes of the crisis, (2) mistakes a subjective human behavior for a mechanical failure and (3) confuses market adjustment mechanisms. From this perspective, the policy aiming to deploy unconventional monetary policies to overcome the broken channels is misguided. The paper fits broken channels into the framework of a more comprehensive theory of the business cycle and suggests a different policy recommendation.

Suggested Citation

  • Mardini Patrick, 2016. "The Case for Repairing Broken Channels without the Use of Unconventional Monetary Policy," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 22(1), pages 61-76, July.
    • Handle: RePEc:bpj:jeehcn:v:22:y:2016:i:1:p:61-76:n:1
    DOI: 10.1515/jeeh-2016-0006
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