In the next recession, central banks will again have to contemplate unconventional responses

摘要

Is it possible to answer "all of the above"? Yes, we've been relying too heavily on monetary policy. Yes, excessive reliance on low interest rates and quantitative easing distorts financial markets and allows risks and imbalances to build up. And yes, the new monetary policy tools utilized during the financial crisis and the Great Recession are likely to remain useful in future downturns.