How challenging is Unconventional Monetary Policy?
Feb 4th, 2009 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Faced with the zero lower bound for overnight interest rate, some central banks (notably the US Federal Reserve, Fed in short) have already resorted to unconventional monetary policy (UMP). There are chances that the ECB may also contemplate about adopting a UMP. The question is how far could unconventional tools go? Are there specific challenges for the ECB in adopting an UMP?