• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library, DOAJ , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2017 Vol.8(2): 96-101 ISSN: 2010-023X
DOI: 10.18178/ijtef.2017.8.2.546

The Unconventional Monetary Policy: A Theoretical Approach

Derya Yılmaz, Emin Ertürk, and Filiz Eryılmaz
Abstract—The financial crisis that erupted on August 2007, hampered the financial markets. Furthermore; with the fall of Lehman Brothers in September 2008, financial crisis evolved into a fullfledged global crisis and depressed the real economy. Central Banks have responded by altering interest rateconventional monetary policyinitially. But this was not enough to calm the financial markets down and revive the real economy. In this regard, major Central BanksFED, ECB, BOE and BOJhave begun to use liquidity support, asset purchases and forward guidance, namely unconventional monetary policies. They have expanded their balance sheets accordingly in order to relieve financial market stress and to revive the real economy. In this study, we explore the theoretical background of these policies and assess their effectiveness.

Index Terms—Unconventional monetary policy, global financial crisis, central banks.

Derya Yılmaz are with Uludag University, Economics, Bursa, 16059, Turkey (e-mail: deryahekim@gmail.com, eerturk@uludag.edu.tr, filizgaygusuz@gmail.com).

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Cite: Derya Yılmaz, Emin Ertürk, and Filiz Eryılmaz, "The Unconventional Monetary Policy: A Theoretical Approach," International Journal of Trade, Economics and Finance vol.8, no.2, pp. 96-101, 2017.

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