What is Unconventional Monetary Policy

1.

Unconventional monetary policies are used in a situation where the interest rate has reached near zero. These include quantitative easing, forward guidance and signalling. Learn more in: Financing Micro, Small, and Medium Enterprises in Indian Industry

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A monetary policy which directly targets the cost and availability of external financing to banks, households and non-financial companies. Learn more in: The Impact of Unconventional Monetary Policies on Unique Alternative Investments: The Case of Fine Wine and Rare Coins

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The widely used approach to evaluating the macroeconomic effects of unconventional monetary policy is the ‘plug-in’ approach, which uses estimates of the impact of unconventional policy measures on asset prices to plug them into standard macroeconomic models Learn more in: Impacts of Global Financial Crisis and Changes in Monetary Policy of Central Banks: An Analysis of Central Bank of the Republic of Turkey (CBRT) and Bank of Israel (BOI)