Paper Title
The Unconventional Monetary Policy
Abstract
The financial crisis that erupted on August 2007, hampered the financial markets. Furthermore; with the
fall of Lehman Borthers in September 2008, financial crisis evolved into a fullfledged
global crisis and depressed the
real economy. Central Banks have responded by altering interest rateconventional
monetary policyinitially.
But this was
not enough to calm the financial markets down and revive the real economy. In this regard, major Central BanksFED,
ECB,
BOE and BOJhave
begun to use liquidity support, asset purchases and forward guidance, namely unconventional
monetary policies. They have expanded their balance sheets accordingly in order to relieve financial market stress and to
revive the real economy
Index Terms- Unconventional monetary policy, 2007 financial crisis, central banks.