Necessity As the Mother of Invention Monetary Policy after the Crisis

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in Working Paper SeriesNecessity as the mother of invention: monetary policy after the crisis Alan Blinder, Michael Ehrmann, Jakob de Haan, David-Jan JansenDisclaimer: This paper should not be reported as representing the views of the European Central Bank (ECB). The views expressed are those of the authors and do not necessarily reflect those of the ECB. No 2 / 2017MONETARY POLICY AFTER THE CRISIS Abstract:We ask whether recent changes in monetary policy due to the financial crisis will be temporary or permanent. We present evidence from two surveys-one of central bank governors, the other of academic specialists. We find that central banks in crisis countries are more likely to have resorted to new policies, to have had discussions about mandates, and to have communicated more. But the thinking has changed more broadly-for instance, central banks in non-crisis countries also report having implemented macro-prudential measures. Overall, we expect central banks in the future to have broader mandates, use macro-prudential tools more widely, and communicate more actively than before the crisis. While there is no consensus yet about the usefulness of unconventional monetary policies, we expect most of them will remain in central banks' toolkits, as governors who gain experience with a particular tool are more likely to assess that tool positively.

The influence of media use on layperson monetary policy knowledge in Germany

“…Blinder et al . () provide evidence for the financial crisis period showing that the wider central banking community extended its communications to the public in a notable way. However, and perhaps unfortunately for the ECB, comments by German economists on economic policy have been predominantly critical.…”

Central Bank Policies and Income and Wealth Inequality: A Survey

“…On the contrary, research on the inequality effects of unconventional policy is scarce. This is so since the experience of central banks with applying nonstandard measures is recent, and not all central banks have introduced these policies (Blinder et al ., ).…”

“…On the contrary, research on the inequality effects of unconventional policy is scarce. This is so since the experience of central banks with applying nonstandard measures is recent, and not all central banks have introduced these policies (Blinder et al, 2017). Table 1 summarizes empirical research on the impact of conventional monetary policy on inequality, while Table 2 summarizes research on the impact of unconventional monetary policy on inequality.…”

“…In line with the emphasis in recent empirical research, we focus on studies analyzing the impact of monetary policy on inequality. However, since the outburst of the financial crisis central banks have increasingly also become responsible for macroprudential policies (Blinder et al, 2017). A few recent studies analyze the relationship between this new instrument in central bankers' toolkit and inequality.…”

Does the Media Help the General Public in Understanding Inflation?

“…Indeed, central banks have been using communication more actively in recent years. A recent survey of central bank heads finds that communication might become even more important to central banks in the near future (Blinder et al ., ). Our findings suggest that reaching out to the general public via traditional media channels may not be a straightforward exercise for central banks.…”