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Monetary policy challenges: how central banks changed their modus operandi

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  • Giorgio Giorgio

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Abstract

The financial crisis that started in August 2007 deeply changed the modus operandi of monetary policy on both sides of the Atlantic Ocean and stimulated a debate about how to formally define and practically implement newly relevant objectives, such as systemic stability, in the reaction function of the Monetary Authorities. This paper provides an assessment of the monetary policy decisions and interventions undertaken by the FED and the ECB, and evaluates the respective monetary policy regimes in place before and during the crisis according to the lessons derived from the theoretical literature on monetary policy developed in the last 2 decades. Copyright Eurasia Business and Economics Society 2014

Suggested Citation

  • Giorgio Giorgio, 2014. "Monetary policy challenges: how central banks changed their modus operandi," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 25-43, June.
  • Handle: RePEc:spr:eurase:v:4:y:2014:i:1:p:25-43 DOI: 10.1007/s40822-014-0002-5
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    References listed on IDEAS

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    1. repec:spr:pharme:v:4:y:2014:i:1:p:3-24 is not listed on IDEAS
    2. repec:spr:eurase:v:7:y:2017:i:2:d:10.1007_s40822-017-0069-x is not listed on IDEAS
    3. Ahmet Aysan & Salih Fendoglu & Mustafa Kilinc, 2014. "Managing short-term capital flows in new central banking: unconventional monetary policy framework in Turkey," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, pages 45-69.
    4. repec:spr:pharme:v:4:y:2014:i:1:p:45-69 is not listed on IDEAS
    5. Sayuri Shirai, 2014. "Japan’s monetary policy in a challenging environment," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 3-24, June.
    6. repec:spr:pharme:v:4:y:2014:i:1:p:71-79 is not listed on IDEAS
    7. Michal Jurek & Pawel Marszalek, 2015. "Policy alternatives for the relationship between ECB monetary and financial policies and new member states," Working papers wpaper112, Financialisation, Economy, Society & Sustainable Development (FESSUD) Project.
    8. Rocco Ciciretti & Iftekhar Hasan & Maya Waisman, 2015. "Distribution strategy and movie performance: an empirical note," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 179-187, June.
    9. Ergun Ermisoglu & Yasin Akcelik & Arif Oduncu & Temel Taskin, 2014. "Effects of additional monetary tightening on exchange rates," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 4(1), pages 71-79, June.

    More about this item

    Keywords

    Monetary policy; Central banking; Financial crisis; E52; E58; E42;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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