What Monetary Policy Operational Framework after the Crisis?

The article discusses what monetary policy implementation framework and techniques should be envisaged for the new normal, i.e. after the large part of the non-standard operations currently still impacting the central bank balance sheet and liquidity conditions would have matured. First, the main reasons why this new normal should be expected to be different from the pre-2007 approach are explored. Subsequently, the article looks in more detail into four specific elements of the long-term implementation framework, namely the counterparty framework, the eligible assets framework, issues relating to negative interest rate policies, and finally the size of the balance sheet. The article concludes by outlining one vision of a modern, efficient, and automated monetary policy implementation for the future. This framework would be an alternative to the floor approach favoured recently by the Federal Reserve and the Bank of England.