Non-Standard Monetary Policy Measures and Their Consequences
The study is a review of the literature concerning the
consequences of non-standard monetary policy, which are used by
central banks during unconventional periods, threatening banking
sector instability. In particular, the attention was paid to the effects of
non-standard monetary policy tools for financial markets. However,
the empirical evidence about their effects and real consequences for
financial markets is still not final. The main aim of the study is to
survey consequences of standard and non-standard monetary policy
instruments, implemented during the global financial crisis in the
United States, United Kingdom and euro area, with particular
attention to the results for the stabilization of global financial
markets. The study consists mainly of the empirical review,
indicating the impact of the implementation of these tools for
financial markets. The following research methods were used in the
study: literature studies, including domestic and foreign literature,
cause and effect analysis and statistical analysis.
[1] B. S. Bernanke, V. R. Reinhart, B. P. Sack, “Monetary Policy
Alternative at the Zero Bound: An Empirical Assessment,” Brookings
Papers on Economic Activity 2, 2004, pp. 1-78.
[2] I. Pyka: „Unconventional instruments of central banks in regulating
banking sector stability in the European Union,” in: “Banking, and crisis
on the financial crisis,” Janc A. (ed.), Poznań University of Economics,
Poznań 2010, p. 60.
[3] P. Sotomska-Krzysztofik, O. Szczepańska, M. Pawliszyn, “Central
banks during the crisis in banking system,” Materials and Studies, issue
No. 179, National Bank of Poland, Warsaw, November 2004, p. 9.
[4] M. Cendal, „Instrumenty polityki pienięŜnej,” in: „Modern monetary
policy,” W. Przybylska-Kapuścińska, Difin, Warsaw 2008, p. 130.
[5] E. Giradin, Z. Moussa, “Quantitative Easing Works: Lesson from the
Unique Experience in Japan 2001-2006,” GREQUAM Document de
Travail 2010-02, p. 30.
[6] H. Ugai, “Effects of the Quantitative Easing Policy: A Survey of the
Empirical Evidence,” Bank of Japan Working Paper No. 06-E-10, July
2006.
[7] A. S. Blinder, “Quantitative Easing: Entrance and Exit Strategies,”
Federal Reserve Bank of St. Louis Review, November/December, 92(6),
2010, p. 475.
[8] M. Joyce, D. Miles, A. Scott, S. Vayanos, “Quantitative Easing and
unconventional monetary policy – an introduction,” The Economic
Journal 122 (November), F271-F288, Royal Economic Society, Oxford
2012, p. 11. [9] A. Szunke, “Non-standard monetary policy tools and their
consequences. The review”, “Journal of Management and Financial
Sciences, Vol. VII, issue 16 (June 2014), Warsaw School of Economics,
Warsaw 2014, p. 28.
[10] S. D’Amico, T. B. King, “Flow and stock effects of large-scale treasury
purchases,” Finance and Economics Discussion Series, No. 2010-52,
2010.
[11] A. Krishnamurthy, A. Vissing-Jorgensen, “The effects of quantitative
easing on interest rates: channels and implications for policy,”
Brookings Papers on Economic Activity, Vol. 2, 2010, pp. 215-287.
[12] J. D. Hamilton, J. C. Wu, “The effectiveness of alternative monetary
policy tools in a zero lower bound environment,” Journal of Money,
Credit and Banking, Vol. 44, February 2012, pp. 3-46.
[13] J. Gagnon, M. Raskin, J. Remache, B. Sack, “The financial market
effects of the Federal Reserve’s large-scale asset purchases,”
International Journal of Central Banking, Vol. 7 (10), March 2011,
pp. 3-43.
[14] E. T. Swanson, “Let’s twist again: a high-frequency event-study analysis
of Operation Twist and its implications for QE2,” Brookings Papers on
Economic Activity, Spring 2011, p. 151-207.
[15] C. Neely, “The large-scale asset purchases had large international
effects,” Federal Reserve Bank of St. Louis Working Paper, No. 2010-
018A, 2010.
[16] U. Szczerbowicz, “Are unconventional monetary policies effective?”
Working Papers CELEF No. 1107, Department of Economic and
Business Sciences, LUISS Guido Carli, 2011.
[17] J. Beirne, L. Dalitz, J. Ejsing, M. Grothe, S. Manganelli, F. Monar, B.
Sahel, M. Susec, J. Tapking, T. Vong, “The impact of the Eurosystem’s
covered Bond purchase programme on the primary and secondary
markets,” ECB Occasional Paper Series, No. 122, 2011.
[18] J. Gagnon, M. Raskin, J. Remache, B. Sack, “Large-scale asset
purchases by the Federal Reserve: did they work?” Economic Policy
Review, Federal Reserve Bank of New York, May 2011, p. 3-43.
[19] J. Meaning, F. Zhu, “The Impact of Recent Central Bank Asset Purchase
Programmes,” Bank of International Settlements, Quarterly Review,
December 2011, p. 73-83.
[20] J. H. Wright, “What Does Monetary Policy Do to Long-Term Interest
Rates at the Zero Lower Bound?” NBER Working Paper Series, No.
17154, Cambridge 2012.
[21] A. Meier, “Panacea, curse, or nonevent: unconventional monetary policy
in the United Kingdom,” IMF Working Paper No. 09/163, 2009.
[22] M. Joyce, M. Tong, R. Woods, “The United Kingdom’s quantitative
easing policy: design, operation and impact,” Bank of England Quarterly
Bulletin 2011 Q3, Vol. 51 (3).
[23] M. Joyce, A. Lasaosa, I. Stevens, M. Tong, “The financial market
impact of quantitative easing,” International Journal of Central
Banking, Vol. 7 (3), 2011.
[24] U. Szczerbowicz, “Effectiveness of Unconventional Monetary Policies
and their Impact on Long-Term Inflation Expectations,” in: “Monetary
Policy after the Crisis,” E. Gnan, R. Kokoszczyński, T. Łyziak, R/
McCauley (ed.), Vienna: SUERF Studies 2011/3 – October 2011, pp.
10-11.
[25] J. B. Taylor, J. C. Williams, “A Black Swan in the Money Market,”
American Economic Journal: Macroeconomics, American Economic
Association, Vol. 1 (1), January 2009, pp. 58-83.
[26] T. Wu, “On the effectiveness of the Federal Reserve’s new liquidity
facilities,” Working Papers 0808, Federal Reserve Bank of Dallas, 2008.
[27] Y. Ait-Sahalia, J. Andritzky, A. Jobst, S. Nowak, N. Tamirasa, “Market
Response to Policy Initiatives during the Global Financial Crisis,”
NBER Working Papers 15809, National Bureau of Economic Research
Inc., 2010.
[28] European Central Bank, Annual Report 2009, p. 57.
[29] B. Coeuré, “Unexpected events and the global safety net,” IMF-SNB
High-Level Conference on the International Monetary System, Zurich,
May 8, 2012.
[1] B. S. Bernanke, V. R. Reinhart, B. P. Sack, “Monetary Policy
Alternative at the Zero Bound: An Empirical Assessment,” Brookings
Papers on Economic Activity 2, 2004, pp. 1-78.
[2] I. Pyka: „Unconventional instruments of central banks in regulating
banking sector stability in the European Union,” in: “Banking, and crisis
on the financial crisis,” Janc A. (ed.), Poznań University of Economics,
Poznań 2010, p. 60.
[3] P. Sotomska-Krzysztofik, O. Szczepańska, M. Pawliszyn, “Central
banks during the crisis in banking system,” Materials and Studies, issue
No. 179, National Bank of Poland, Warsaw, November 2004, p. 9.
[4] M. Cendal, „Instrumenty polityki pienięŜnej,” in: „Modern monetary
policy,” W. Przybylska-Kapuścińska, Difin, Warsaw 2008, p. 130.
[5] E. Giradin, Z. Moussa, “Quantitative Easing Works: Lesson from the
Unique Experience in Japan 2001-2006,” GREQUAM Document de
Travail 2010-02, p. 30.
[6] H. Ugai, “Effects of the Quantitative Easing Policy: A Survey of the
Empirical Evidence,” Bank of Japan Working Paper No. 06-E-10, July
2006.
[7] A. S. Blinder, “Quantitative Easing: Entrance and Exit Strategies,”
Federal Reserve Bank of St. Louis Review, November/December, 92(6),
2010, p. 475.
[8] M. Joyce, D. Miles, A. Scott, S. Vayanos, “Quantitative Easing and
unconventional monetary policy – an introduction,” The Economic
Journal 122 (November), F271-F288, Royal Economic Society, Oxford
2012, p. 11. [9] A. Szunke, “Non-standard monetary policy tools and their
consequences. The review”, “Journal of Management and Financial
Sciences, Vol. VII, issue 16 (June 2014), Warsaw School of Economics,
Warsaw 2014, p. 28.
[10] S. D’Amico, T. B. King, “Flow and stock effects of large-scale treasury
purchases,” Finance and Economics Discussion Series, No. 2010-52,
2010.
[11] A. Krishnamurthy, A. Vissing-Jorgensen, “The effects of quantitative
easing on interest rates: channels and implications for policy,”
Brookings Papers on Economic Activity, Vol. 2, 2010, pp. 215-287.
[12] J. D. Hamilton, J. C. Wu, “The effectiveness of alternative monetary
policy tools in a zero lower bound environment,” Journal of Money,
Credit and Banking, Vol. 44, February 2012, pp. 3-46.
[13] J. Gagnon, M. Raskin, J. Remache, B. Sack, “The financial market
effects of the Federal Reserve’s large-scale asset purchases,”
International Journal of Central Banking, Vol. 7 (10), March 2011,
pp. 3-43.
[14] E. T. Swanson, “Let’s twist again: a high-frequency event-study analysis
of Operation Twist and its implications for QE2,” Brookings Papers on
Economic Activity, Spring 2011, p. 151-207.
[15] C. Neely, “The large-scale asset purchases had large international
effects,” Federal Reserve Bank of St. Louis Working Paper, No. 2010-
018A, 2010.
[16] U. Szczerbowicz, “Are unconventional monetary policies effective?”
Working Papers CELEF No. 1107, Department of Economic and
Business Sciences, LUISS Guido Carli, 2011.
[17] J. Beirne, L. Dalitz, J. Ejsing, M. Grothe, S. Manganelli, F. Monar, B.
Sahel, M. Susec, J. Tapking, T. Vong, “The impact of the Eurosystem’s
covered Bond purchase programme on the primary and secondary
markets,” ECB Occasional Paper Series, No. 122, 2011.
[18] J. Gagnon, M. Raskin, J. Remache, B. Sack, “Large-scale asset
purchases by the Federal Reserve: did they work?” Economic Policy
Review, Federal Reserve Bank of New York, May 2011, p. 3-43.
[19] J. Meaning, F. Zhu, “The Impact of Recent Central Bank Asset Purchase
Programmes,” Bank of International Settlements, Quarterly Review,
December 2011, p. 73-83.
[20] J. H. Wright, “What Does Monetary Policy Do to Long-Term Interest
Rates at the Zero Lower Bound?” NBER Working Paper Series, No.
17154, Cambridge 2012.
[21] A. Meier, “Panacea, curse, or nonevent: unconventional monetary policy
in the United Kingdom,” IMF Working Paper No. 09/163, 2009.
[22] M. Joyce, M. Tong, R. Woods, “The United Kingdom’s quantitative
easing policy: design, operation and impact,” Bank of England Quarterly
Bulletin 2011 Q3, Vol. 51 (3).
[23] M. Joyce, A. Lasaosa, I. Stevens, M. Tong, “The financial market
impact of quantitative easing,” International Journal of Central
Banking, Vol. 7 (3), 2011.
[24] U. Szczerbowicz, “Effectiveness of Unconventional Monetary Policies
and their Impact on Long-Term Inflation Expectations,” in: “Monetary
Policy after the Crisis,” E. Gnan, R. Kokoszczyński, T. Łyziak, R/
McCauley (ed.), Vienna: SUERF Studies 2011/3 – October 2011, pp.
10-11.
[25] J. B. Taylor, J. C. Williams, “A Black Swan in the Money Market,”
American Economic Journal: Macroeconomics, American Economic
Association, Vol. 1 (1), January 2009, pp. 58-83.
[26] T. Wu, “On the effectiveness of the Federal Reserve’s new liquidity
facilities,” Working Papers 0808, Federal Reserve Bank of Dallas, 2008.
[27] Y. Ait-Sahalia, J. Andritzky, A. Jobst, S. Nowak, N. Tamirasa, “Market
Response to Policy Initiatives during the Global Financial Crisis,”
NBER Working Papers 15809, National Bureau of Economic Research
Inc., 2010.
[28] European Central Bank, Annual Report 2009, p. 57.
[29] B. Coeuré, “Unexpected events and the global safety net,” IMF-SNB
High-Level Conference on the International Monetary System, Zurich,
May 8, 2012.
@article{"International Journal of Business, Human and Social Sciences:69000", author = "Aleksandra Nocoń (Szunke)", title = "Non-Standard Monetary Policy Measures and Their Consequences", abstract = "The study is a review of the literature concerning the
consequences of non-standard monetary policy, which are used by
central banks during unconventional periods, threatening banking
sector instability. In particular, the attention was paid to the effects of
non-standard monetary policy tools for financial markets. However,
the empirical evidence about their effects and real consequences for
financial markets is still not final. The main aim of the study is to
survey consequences of standard and non-standard monetary policy
instruments, implemented during the global financial crisis in the
United States, United Kingdom and euro area, with particular
attention to the results for the stabilization of global financial
markets. The study consists mainly of the empirical review,
indicating the impact of the implementation of these tools for
financial markets. The following research methods were used in the
study: literature studies, including domestic and foreign literature,
cause and effect analysis and statistical analysis.
", keywords = "Asset purchase facility, consequences of monetary
policy instruments, non-standard monetary policy, Quantitative
Easing.", volume = "9", number = "2", pages = "482-5", }
