Journal Article

Unconventional Monetary Policy Measures and Inflation Expectations

Abstract: After its conventional monetary policy tool, the federal funds rate, hit the zero lower bound, the Federal Reserve implemented a number of new tools, including large-scale asset purchases, to provide stimulus to the economy in the Great Recession and the subsequent slow recovery. Such measures caused an unprecedented increase in the Fed?s balance sheet and led some to fear that high inflation would soon follow. In this Economic Commentary, we argue that historical data for various measures of expected inflation did not provide any support for those fears. In addition, a look at the past six years shows that these fears have not materialized.

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2015

Issue: June

Order Number: 7