Monetary Policy and Economic Performance Since the Financial Crisis

56 Pages Posted: 1 Sep 2020

See all articles by Dario Caldara

Dario Caldara

Board of Governors of the Federal Reserve System

Etienne Gagnon

Board of Governors of the Federal Reserve System

Enrique Martínez-García

Federal Reserve Banks - Federal Reserve Bank of Dallas

Christopher J. Neely

Federal Reserve Bank of St. Louis - Research Division

Multiple version iconThere are 4 versions of this paper

Date Written: August, 2020

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.

JEL Classification: E31, E32, E52, E58

Suggested Citation

Caldara, Dario and Gagnon, Etienne and Martínez-García, Enrique and Neely, Christopher J., Monetary Policy and Economic Performance Since the Financial Crisis (August, 2020). FEDS Working Paper No. 2020-65, Available at SSRN: https://ssrn.com/abstract=3684671 or http://dx.doi.org/10.17016/FEDS.2020.065

Dario Caldara (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Etienne Gagnon

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States
2024523522 (Phone)

Enrique Martínez-García

Federal Reserve Banks - Federal Reserve Bank of Dallas

2200 North Pearl Street
PO Box 655906
Dallas, TX 75265-5906
United States

Christopher J. Neely

Federal Reserve Bank of St. Louis - Research Division ( email )

411 Locust St
Saint Louis, MO 63011
United States
314-444-8568 (Phone)
314-444-8731 (Fax)

HOME PAGE: http://www.stls.frb.org/research/econ/cneely/

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