Necessity As the Mother of Invention: Monetary Policy after the Crisis

By Alan S. Blinder, Michael Ehrmann, Jakob de Haan, D. Jansen. Social Science Research Network, 2017

170 citations recorded by the source corpus.

We ask whether recent changes in monetary policy due to the financial crisis will be temporary or permanent. We present evidence from two surveys-one of central bank governors, the other of academic specialists. We find that central banks in crisis countries are more likely to have resorted to new policies, to have had discussions about mandates, and to have communicated more. But the thinking has changed more broadly-for instance, central banks in non-crisis countries also report having implemented macro-prudential measures. Overall, we expect central banks in the future to have broader mandates, use macro-prudential tools more widely, and communicate more actively than before the crisis. While there is no consensus yet about the usefulness of unconventional monetary policies, we expect most of them will remain in central banks' toolkits, as governors who gain experience with a particular tool are more likely to assess thattool positively. Finally, the relationship between central banks and their governments might well have changed, with central banks "crossing the line" nmore often than in the past.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/abb6a9ecefad4a300f50b621dd2d5a25ee7ecfd7

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Citations in the corpus

Central bank mandates, sustainability objectives and the promotion of green finance (2019, background): “The more political the work of central banks becomes, the more their independence will be questioned, suggesting a need for more and better communication, especially over controversial areas (Blinder et al., 2017).”
CENTRAL BANK POLICIES AND INCOME AND WEALTH INEQUALITY: A SURVEY (2019, unknown): “However, since the outburst of the financial crisis central banks have increasingly also become responsible for macroprudential policies (Blinder et al., 2017).”
A Tale of Two Decades: The Ecb's Monetary Policy at 20 (2019, background): “(2019), Sims and Wu (2019), and, on the euro area, Szczerbowicz (2015), Boeckx et al. (2017), Gambetti and Musso (2017), Podlich et al. (2017), Mouabbi and Sahuc (2019), Gibson et al.”