Unconventional Monetary Policy After the Financial Crisis of 2007/2008

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This case concerns the monetary response from central banks to the financial crisis of 2007-2008. We focus on the case of the U.S. The case discusses the conventional interest rate policy employed, as well as the unconventional policy of quantitative easing. It gives a summary of the objectives behind these measures and the concerns they faced at the time.
Bibliographic citation: MUELLER-FRANK, M. (2021). Unconventional Monetary Policy After the Financial Crisis of 2007/2008. IESE, ECON-423-E.
Date: 01/05/2021
Author(s): Manuel Mueller-Frank
Document type: Case
Department: Economics
Languages: English
Geographic area: United States
Learning objective The teaching purpose is for students to understand conventional and unconventional monetary policy tools. Three questions will be raised: First, how do these policies impact the economy and business in particular? Second, who are the winners and losers of this policy? Third, why didn't the feared sharp rise in inflation materialize?