Journal Article

Doubling your monetary base and surviving: some international experience


Abstract: The authors examine the experience of selected central banks that have used large-scale balance-sheet expansion, frequently referred to as ?quantitative easing,? as a monetary policy instrument. The case studies focus on central banks responding to the recent financial crisis and Nordic central banks during the banking crises of the 1990s; others are provided for comparison purposes. The authors conclude that large-scale balance-sheet increases are a viable monetary policy tool provided the public believes the increase will be appropriately reversed.

Keywords: Monetary policy - United States; Financial crises; Money supply;

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Review

Publication Date: 2010

Volume: 92

Issue: Nov

Pages: 481-506