Monetary Policy and Economic Performance Since the Financial Crisis

58 Pages Posted: 2 Jun 2021

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 Bank of Dallas - Research Department

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 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

Caldara, Dario and Gagnon, Etienne and Martinez-Garcia, Enrique and Neely, Christopher J., Monetary Policy and Economic Performance Since the Financial Crisis (August, 2020). Globalization and Monetary Policy Institute Working Paper No. 399, Available at SSRN: https://ssrn.com/abstract=3855940 or http://dx.doi.org/10.24149/gwp399

Dario Caldara (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
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Etienne Gagnon

Board of Governors of the Federal Reserve System ( email )

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Washington, DC 20551
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2024523522 (Phone)

Enrique Martinez-Garcia

Federal Reserve Bank of Dallas - Research Department ( email )

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HOME PAGE: http://sites.google.com/view/emgeconomics

Christopher J. Neely

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

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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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