Non-standard monetary policy measures for selected Central banks

Abstract

The main focus of this paper is presentation of non-standard monetary policy measures of selected central banks. The banks which are subject of analysis are Federal Reserve Bank, European Central Bank, Bank of England and Bank of Japan. All the aforementioned central banks have begun to apply non-standard monetary policy measures since the global financial and economic crisis, which has led that inflation rate in a long-term be below the target level. In case of the Federal Reserve Bank non-standard policy actions were implementing to put downward pressure on real longer-term interest rates and more generally to improve overall financial and economic conditions. The European Central Bank goal in using non-standard monetary policy is to return inflation rate to levels below, but close to, 2% over the medium term, while in case of the Bank of England it was response to the North Atlantic banking crisis and to a sharp downturn in domestic economic prospects. The Bank of Japan aim is to fight against deflation and to reach inflation target of 2%.

Keywords

• non-standard monetary policy measures
• global financial crises
• quantitative easing