Study On Unconventional Monetary Policy

Unconventional monetary policy has been the most important part of rescuing mechanism of the financial crisis.During the subprime mortgage crisis,the practice of unconventional monetary policy emerged and then the related theory has become the heated topic of the academics.Federal Reserve took the responsibility of "The last Lender" to stabilize the financial system and played the role as "The first Lender" in the extreme setting of the communication system of credit and loan being heavily destroyed. Federal Reserve kept strengthing the regular conventional monetary operation and took the unconventional monetary policy,such as designing many fund-raising tools and implementing two rounds of quantitative easing policyand so on.Based on the relevant practice of the Federal Reserve's monetary policy and researeh findings,this thesis displays the practice of the Federal Reserve's unconventional monetary policy in the subprime mortgage crisis and carrys on the systematic analysis on the present affected currency policy from two aspects,including short-term and long-term influence.lt is indicated that Federal Reserve's successful operation of monetary policy produced positive influence on the economy recovery by relieving the Liquidity Risk risk of the market. But it exists some long-term threats,including much greater inflation threat America will face to,the more uncerntainty about economic desicion and the restrictions about the entrance of unconventional monetary policy.China's rescuing system of financial crisis is not robust,so it is much advisable to learn the developed countries'related operations.Finally,this thesis reflects unconventional monetary policy from two aspects,including the Federal Reserve's independence and the moral risk of financial institutions and analyzes the Federal Reserve's unconventional monetary policy combining China's situation and gets some conclusions,aiming at some suggestions for the perfecting the currency policy's regulations and the financial crisis rescuing system.