Monetary Policy x Crisis (Manegishi and Cournède)

Monetary Policy Responses to the Crisis and Exit Strategies by Makoto Minegishi and Boris Cournède. This paper documents these responses in a systematic way, reviews the evidence about their impact, and discusses the need to exit from these measures. Unconventional monetary policy measures appear to have been broadly successful in terms of improving conditions in financial markets and stabilising the real economy. In line with the improvement in functioning of financial markets, however, these unconventional measures should be gradually removed. Given the considerable changes in the size and composition of central banks’ balance sheets, the exit will likely involve the combination of varios tools.