Monetary Economics Seminar of Kobe University
Jointly supported by RIEB Seminar
Date & Time
Online Seminar by Zoom (Meeting link will be informed to the attendees only.)
The seminar is for the workshop members only.
Handouts will be sent to the attendees only.
10:00am ～ 12:00pm
- Unconventional Monetary Policy in Advanced Economies - Analytical Framework, Empirical Evidence and Policies
- Kenneth N. KUTTNER (Department of Economics, Williams College)
- The presentation will provide an overview of the unconventional tools used by advanced economy central banks in their efforts to overcome the effective lower bound (ELB) on the policy rate: quantitative easing (QE) and Forward Guidance (FG) in the US; as well as negative interest rates in Japan, the Euro area, and (for a time) Sweden. The presentation will first outline the channels through which unconventional policies are transmitted to the economy, and the limits of those policies in stimulating aggregate spending. Next, it will describe the difficulties inherent in assessing the economic effects of unconventional policies and present a selective survey of the evidence on the effectiveness of QE and FG, focusing on the US experience. It will then discuss a few of the unintended consequences of unconventional policies, such as destabilizing capital flows and financial risk-taking. Finally, it will conclude with some observations on the key differences between the policies taken by the Fed in the past year and those implemented following the financial crisis.