Panacea, Curse, or Nonevent? Unconventional Monetary Policy in the United Kingdom

August 1, 2009

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Format: Chicago

Andre Meier. Panacea, Curse, or Nonevent? Unconventional Monetary Policy in the United Kingdom, (USA: International Monetary Fund, 2009) accessed September 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The Bank of England's current "quantitative easing" strategy has given rise to a controversial debate about the effects and risks of unconventional monetary policy. The present paper makes two contributions to this debate. First, it provides a systematic overview of unconventional policy options, drawing from existing theoretical and empirical studies. Against this backdrop, it then analyzes the BoE's specific policies, discussing their effectiveness so far and putting them into a cross-country context. Tentative evidence on the BoE's quantitative easing is moderately encouraging, although the strategy is neither guaranteed to succeed nor as perilous as some of its detractors claim.

Subject: Banking, Central bank policy rate, Inflation, Monetary base, Unconventional monetary policies

Keywords: Asset purchase, Commercial paper, Government bond, Private sector, Quantitative easing, WP

Publication Details

Pages:

47
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/163
Stock No:

WPIEA2009163
ISBN:

9781451873108
ISSN:

1018-5941

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