Monetary Policy and Economic Performance Since the Financial Crisis
58 Pages Posted: 2 Jun 2021
Date Written: August, 2020
We review the 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: Suggested Citation