Evaluation of the Unconventional Monetary Policy: Evidence from the EU and the US

Shady Hassan

Abstract


The monetary response to the 2007 financial crisis was unprecedented. The US Federal Reserve and the European Central Bank (ECB) tried to counter, unsuccessfully, the deflationary forces in their economies throw the regular instruments. Therefore, the ECB and the Fed started to experiment with unconventional policies as they started to purchase a large amount of privet and governments assets of different maturities. That process, which is commonly referred to as quantitative easing (QE), is the focus of this paper. The paper evaluates those policies’ impact on the interest, inflation, unemployment rates and inequality. The paper also examines the effects of those Central Banks policies on the redistribution of risks from southern Europe (e.g. Greece) to the northern ones (e.g. Germany).


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Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.