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Monetary Policy In Exceptional Times

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Executive Summary

This paper describes the response of three central banks to the 2007-09 financial crises: the European Central Bank, the Federal Reserve and the Bank of England. In particular, the paper discusses the design, implementation and impact of so-called "Non-standard'' monetary policy measures focusing on those introduced in the euro area in the aftermath of the failure of Lehman Brothers in September 2008. Having established the impact of these measures on various observable money markets spreads, the authors propose an empirical exercise intended to quantify the macroeconomic impact of non-standard monetary policy measures insofar as it has been transmitted via these spreads.

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