Table of Contents

1. New instruments of monetary policy Jagjit S. Chadha and Sean Holly; 2. Liquidity and monetary policy Douglas Gale; 3. Interest rate policies and the stability of banking systems Hans Gersbach and Jan Wenzelberger; 4. Handling liquidity shocks: QE and Tobin's q Marcus Miller and John Driffill; 5. Asset purchase policies and portfolio effects: a DSGE analysis Richard Harrison; 6. Financial intermediaries in an estimated DSGE model for the UK Stefania Villa and Jing Yang; 7. Unconventional monetary policy, central bank balance sheets and long term forward rates Sharon Kozicki, Eric Santor and Lena Suchanek; 8. Non-standard monetary policy measures and monetary developments Domenico Giannone, Michele Lenza, Huw Pill and Lucrezia Reichlin; 9. Quantitative easing: one year on Spencer Dale; 10. What saved the banks: unconventional monetary or fiscal policy? Mike Wickens; 11. Non-conventional monetary policies: three views from the DSGE literature Evren Caglar, Jack Meaning, Alex Waters, James Warren and Jagjit Chadha.

Promotional Information

One of the first book-length examinations of monetary policy instruments used in response to the recent financial crisis.

About the Author

Jagjit S. Chadha is Professor of Economics, University of Kent. Sean Holly is Professional Fellow at Fitzwilliam College and Director of Research at the Faculty of Economics, University of Cambridge.

Reviews

'Many failings were revealed by the on-going financial crisis. The reputations of bankers and regulators have been shredded. But the reputation of academic macro-economists also joined them in the dust-bin. In this important new book Chadha and Holly take stock of the lessons of the financial crisis and the unconventional measures that have had to be adopted, in order to bring academic analysis to bear on the extraordinary events of recent years, and to restore dignity to our profession.' Charles Goodhart , Emeritus Professor of Banking and Finance, London School of Economics and Political Science

'A wide-ranging examination of central bank actions during the financial crisis using state-of-the-art methods.' Glenn Rudebusch, Executive Vice President and Director of Research, Federal Reserve Bank of San Francisco

'This is an excellent first installment in a series of books that examines the implications of the financial crisis for the field of macroeconomics. The various chapters, written by a blend of top academics and central bank economists who are in the frontline, cover both the theory and the practice of how monetary policy ought to respond to financial crises.' Frank Smets, Director General of the Directorate General Research, European Central Bank