Unconventional Choices for Unconventional Times Credit and Quantitative Easing in Advanced Economies

By Vladimir Klyuev, Phil De Imus, Krishna Srinivasan

November 4, 2009

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Vladimir Klyuev, Phil De Imus, and Krishna Srinivasan. Unconventional Choices for Unconventional Times Credit and Quantitative Easing in Advanced Economies, (USA: International Monetary Fund, 2009) accessed June 17, 2025

Summary

This paper examines the unconventional monetary policy actions undertaken by G-7 central banks and assesses their effectiveness in alleviating financial market pressures and facilitating credit flows to the real economy. Central banks acted nimbly, decisively, and creatively in their response to the deepening of the crisis. They embarked on a number of unconventional policies, some of which had been tried before, while others were new. The scale and scope of unconventional measures have differed substantially across major central banks. Massive asset purchases have boosted the size of the central bank balance sheets the most in the United States and the United Kingdom. However, the Bank of England has relied primarily on the purchases of government bonds, while the Fed has acquired a variety of assets, including commercial paper and mortgage-backed securities and providing financing for acquisition of other asset-backed securities. Central bank interventions, along with government actions, have been broadly successful in stabilizing financial conditions over time.

Subject: Asset and liability management, Banking, Central bank policy rate, Credit, Financial institutions, Financial services, Liquidity, Money, Securities, Sovereign bonds

Keywords: Bank reserves, Central bank currency swaps, Central bank policy rate, Credit, Europe, Excess reserves, Fed liquidity, Financial market, Global, Government bond, Issue central bank bank bill, Liquidity, Liquidity facilities, Liquidity operations, Monetary policy, Money market, Overnight rate, Preferred shares, Quantitative easing, Securities, Sovereign bonds, SPN

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Staff Position Note No. 2009/027
Stock No:

SPNEA2009027
ISBN:

9781462382828
ISSN:

2617-6742

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