Monetary Policy and Economic Performance Since the Financial Crisis

36 Pages Posted: 21 Oct 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 5 versions of this paper

Date Written: October, 2021

Abstract

We review the macroeconomic performance during the Global Financial Crisis and subsequent economic expansion, as well as 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.

Keywords: global financial crisis, macroeconomic performance, dual mandate, forward guidance, balance sheet policies, federal funds rates

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 (October, 2021). Available at SSRN: https://ssrn.com/abstract=3946806 or http://dx.doi.org/10.20955/r.103.425-60

Dario Caldara (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
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Etienne Gagnon

Board of Governors of the Federal Reserve System ( email )

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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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