Unconventional monetary policy: a theoretical perspective
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Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
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Author
Date
2020
Department
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
16
Series
Abstract
This paper is a literature review that studies a model of credit policy conducted by the central bank. In this paper, the model is explained and, using the model, the effectiveness of credit policy is analysed in different scenarios with similarities to the scenario of the 2008 financial crisis. It is shown that credit policy can have a significant positive impact on key aspects of an economy, such as output and inflation, especially when the zero lower bound limit of conven-tional monetary policy is binding, but even when the limit is not binding. The effects of credit policy can thus help an economy recover from the recession.Description
Thesis advisor
Murto, PauliMustonen, Mikko
Keywords
unconventional, monetary policy, monetary, policy, theoretical
