Policy Initiatives in the Global Recession: What Did Forecasters Expect?
11 Pages Posted: 25 Feb 2012
Date Written: February 1, 2012
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: Suggested Citation