Research On The Effectiveness Of Unconventional Monetary Policy In The Financial Crisis

In summer2007, the U.S. sub-prime mortgage crisis erupted, which caused2007-2009global financial crisis afterward. The harm current financial crisis brought is not inferior to the influence of the Great Depression happened in the1930s. The financial crisis not only led to financial system turbulence in world, but struck various countries’entity economy seriously. Facing with severe situation, central banks in various countries launched rescue activities massively, implemented unconventional monetary policy in response to economy recession. This paper utilizes New-Keynesian classical theory and econometrics research technique, by transverse and longitudinal comparison, to describe the effectiveness of unconventional monetary policy.The main contents of this paper include:(i) Establishment of elementary unconventional monetary policy theory frame;(ii) Summarizing and comparing unconventional monetary policy practice in advanced and emerging economies;(iii) Using New-Keynesian theory model to discuss the impact on macroeconomics of unconventional monetary policy;(iv) Analyzing the effectiveness of unconventional monetary policy in SVAR model;(v) Giving some advices to Chinese monetary policy makers.Finally, this paper concludes that:(i) There are some differences between conventional and unconventional monetary policy;(ii) The emphases on conventional and unconventional monetary policy implementation are not the same;(iii) From the perspective of achieving monetary policy ultimate objectives, unconventional monetary policy is effective;(iv) Unconventional monetary policy affects economy through multiple channels, the impulses from different channels function different aspects of economy.