Work detail

Unconventional Monetary Policy Tools - Description and Evaluation of their Efficiency

Author: c. Denis Bandžak
Year: 2019 - summer
Leaders: PhDr. Michal Hlaváček Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 89
Awards and prizes:
Link: https://is.cuni.cz/webapps/zzp/detail/201000/
Abstract: This thesis examines the role of unconventional monetary policy tools during and after the
global financial crisis with a particular focus on three main parts – their description,
implementation and efficiency. By introducing a thorough discussion based on both past
and most recent papers on this topic, we provide an updated view on the classification of
individual unconventional monetary policy tools which is often used inaccurately by the
current literature. We further enrich the discussion by describing different strategies which
central banks used before and after the global financial crisis along with the future plans
and tendency of central banks in monetary policy. We conclude the thesis by our own
analysis of the effects of quantitative easing on GDP and CPI using a Bayesian vector
autoregression model with sign restrictions applied on Japan, the Eurozone, the UK and
the US. We find a more pronounced and significant effect of quantitative easing on GDP
and CPI for the UK and the US than for the Eurozone and Japan. Nevertheless, our
findings have to be considered with utmost care as the model is very simplified and
sensitive to the parameters chosen.

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