Necessity as the Mother of Invention: Monetary Policy after the Crisis / Alan S. Blinder, Michael Ehrmann, Jakob de Haan, David-Jan Jansen.

Format:

Book

Author/Creator:

Blinder, Alan S.

Contributor:

National Bureau of Economic Research.

Ehrmann, Michael.

de Haan, Jakob.

Jansen, David-Jan.

Series:

Working Paper Series (National Bureau of Economic Research) no. w22735.

NBER working paper series no. w22735

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Necessity as the Mother of Invention

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2016.

Summary:

We ask whether recent changes in monetary policy due to the financial crisis will be temporary or permanent. We present evidence from two surveys--one of central bank governors, the other of academic specialists. We find that central banks in crisis countries are more likely to have resorted to new policies, to have had discussions about mandates, and to have communicated more. But the thinking has changed more broadly--for instance, central banks in non-crisis countries also report having implemented macro-prudential measures. Overall, we expect central banks in the future to have broader mandates, use macro-prudential tools more widely, and communicate more actively than before the crisis. While there is no consensus yet about the usefulness of unconventional monetary policies, we expect most of them will remain in central banks' toolkits, as governors who gain experience with a particular tool are more likely to assess that tool positively. Finally, the relationship between central banks and their governments might well have changed, with central banks "crossing the line" more often than in the past.

Notes:

Print version record

October 2016.