Policy Initiatives in the Global Recession: What Did Forecasters Expect?

11 Pages Posted: 25 Feb 2012

See all articles by Carlos Carvalho

Carlos Carvalho

Pontifical Catholic University of Rio de Janeiro (PUC-Rio) - Department of Economics; Kapitalo Investimentos

Stefano Eusepi

University of Texas at Austin

Christian Grisse

Swiss National Bank

Date Written: February 1, 2012

Abstract

The global recession of 2008-09 led to monetary and fiscal policy responses by central banks and government authorities that were often unconventional in size and scope. A study of expansionary measures employed during the recession suggests that overall, the policies were likely effective in shaping the outlook for a recovery, as forecasters raised their expectations of inflation and GDP growth after the policies’ implementation. From this perspective, the policies stimulated economic activity and prevented deflationary pressures during the financial crisis.

Keywords: unconventional monetary policy, inflation expectations

JEL Classification: E00, E52, E58, E62

Suggested Citation

Carvalho, Carlos and Eusepi, Stefano and Grisse, Christian, Policy Initiatives in the Global Recession: What Did Forecasters Expect? (February 1, 2012). Current Issues in Economics and Finance, Vol. 18, No. 1, 2012, Available at SSRN: https://ssrn.com/abstract=2010647 or http://dx.doi.org/10.2139/ssrn.2010647

Carlos Carvalho

Pontifical Catholic University of Rio de Janeiro (PUC-Rio) - Department of Economics ( email )

Rua Marques de Sao Vicente, 225/206F
Rio de Janeiro, RJ 22451
Brazil

HOME PAGE: http://https://sites.google.com/site/cvianac2/carloscarvalho

Kapitalo Investimentos ( email )

São Paulo
Brazil

Stefano Eusepi (Contact Author)

University of Texas at Austin ( email )

2317 Speedway
Austin, TX 78712
United States

Christian Grisse

Swiss National Bank ( email )

Research
Fraumuensterstr. 8
Zuerich, 8022
Switzerland

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