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Panacea, Curse, or Nonevent? Unconventional Monetary Policy in the United Kingdom

  • André Meier

The Bank of England's current "quantitative easing" strategy has given rise to a controversial debate about the effects and risks of unconventional monetary policy. The present paper makes two contributions to this debate. First, it provides a systematic overview of unconventional policy options, drawing from existing theoretical and empirical studies. Against this backdrop, it then analyzes the BoE's specific policies, discussing their effectiveness so far and putting them into a cross-country context. Tentative evidence on the BoE's quantitative easing is moderately encouraging, although the strategy is neither guaranteed to succeed nor as perilous as some of its detractors claim.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 09/163.

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Length: 47
Date of creation: 01 Aug 2009
Date of revision:
Handle: RePEc:imf:imfwpa:09/163
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  13. Athanasios Orphanides, 2004. "Monetary policy in deflation: the liquidity trap in history and practice," Finance and Economics Discussion Series 2004-01, Board of Governors of the Federal Reserve System (U.S.).
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