In the first stage of the crisis, the Federal Reserve (Fed) rapidly embarked on interest rate cuts followed by several rounds of substantial quantitative easing. However, the marked monetary easing and the persistently low interest rates triggered mounting fears of inflation, calling into...

The instruments applied by the ECB and the Fed1 during the crisis were based on similar principles, but as the ECB and the Fed function in different financial intermediary systems, they relied on different tools to respond to different types of challenges. Both institutions increased liquidity...

This article provides an overview of international experiences with the use of unconventional central bank instruments. The application of unconventional instruments may be justified by the existence of financial market friction, turmoil, failure or constraint, when instruments that change the...