REASSESSING CONVENTIONAL AND UNCONVENTIONAL MONETARY POLICIES

 
Autor (i): Alina Georgeta & Ailincă
 
JEL: E40, E52, E58, E61
 
Cuvinte cheie: monetary policies, quantitative easing, policies negative interest rates, forward guidance
 
Abstract:
 A lot has been written about the conventional and unconventional monetary policies, and the literature shows the advantages and disadvantages if these monetary policies. It can often be noticed that there is no clear, unanimously accepted explanation for giving up the conventional monetary policies; only their limitations are showed. It is also not clear how much or which of the quantitative easing, negative policies rates or forward guidance policies were beneficial for the economic growth, production and inflation. There is an opinion that their use cannot be beneficial on the long term because they are mostly circumstantial measures, but their withdrawal might also be difficult and, if done, it should be gradual. The paper aims to provide a critique of the conventional and unconventional monetary policies, examining thoroughly their role and behaviour within the real and monetary economy. The paper shows that the mistrust and the lack of correct and complete assumption of the role of the monetary policy within the economy are among the causes of the limitations of the conventional and unconventional policies within the economy. 
 
 
Articol: Fisier PDF