Working Paper

Monetary Policy and Economic Performance since the Financial Crisis

Abstract: We review macroeconomic performance over the period since the Global Financial Crisis and the challenges in the pursuit of the Federal Reserve’s dual mandate. We characterize the use of forward guidance and balance sheet policies after the federal funds rate reached the effective lower bound. We also review the evidence on the efficacy of these tools and consider whether policymakers might have used them more forcefully. Finally, we examine the post-crisis experience of other major central banks with these policy tools.

Keywords: effective lower bound; monetary policy; forward guidance; structural changes; Global Financial Crisis 2007–09; balance sheet policies;

JEL Classification: E31; E32; E52; E58;

Status: Published in Federal Reserve Bank of St. Louis Review

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 2020-08

Number: 2020-026

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