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Economies 2014, 2(2), 109-123;

The Formation of New Monetary Policies: Decisions of Central Banks on the Great Recession

Department of Applied Economics, Faculty of Economics, As Lagoas Marcosende s/n. 36310 Vigo, Spain
Author to whom correspondence should be addressed.
Received: 17 December 2013 / Revised: 4 April 2014 / Accepted: 6 May 2014 / Published: 21 May 2014
(This article belongs to the Special Issue Effects of Fiscal and Monetary Policy in the Great Recession)
Full-Text   |   PDF [294 KB, uploaded 21 May 2014]


The effect that the Great Recession had on monetary policies has led to the profound reorientation of central banks’ actions from 2007 to 2013. The purpose of this work is to analyze the monetary policies applied by the main central banks, mainly the European Central Bank, the Federal Reserve System of USA and the Bank of Japan, in order to raise thoughts on the guidelines that central banks should follow in the future. In the first section the bases of monetary policy before the crisis are described; in the second we explain the change in the orientation of the role of central banks during the crisis; and finally, we synthesize the bases on which the economic debate is taking place on the orientation of future monetary policies. We conclude that, in so far as the inoperativeness of transmission mechanisms still persists, monetary policies will remain in a process of change. View Full-Text
Keywords: monetary policy; central bank; monetary transmission mechanisms monetary policy; central bank; monetary transmission mechanisms
This is an open access article distributed under the Creative Commons Attribution License (CC BY 3.0).

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MDPI and ACS Style

Castro, A.E.; Teixeira, J.F. The Formation of New Monetary Policies: Decisions of Central Banks on the Great Recession. Economies 2014, 2, 109-123.

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