Part IV Legal Aspects of Central Banking and Banking Regulation and Supervision, 18 Unconventional Monetary Policy in the Euro Area: A Comparative Analysis with the Unconventional Monetary Policy of the Federal Reserve »
Christoph Martin OhlerFrom: International Monetary and Banking Law post COVID-19
Edited By: William Blair, Christos Gortsos, Chiara Zilioli
This chapter presents a comparative analysis of the unconventional monetary policy of the European Central Bank with the Federal Reserve. It looks into the unconventional monetary policy and its varying objectives correlating to the Global Financial Crisis, Euro Crisis, and the COVID-19 pandemic. As developments continued, the monetary policy required the implementation of new policy tools, including asset purchase programmes, negative interest rates and new forms of central bank communication. However, doubts arose with respect to the very low level of long-term interest rates over a long period of time, especially when it could trigger undesired side-effects and impair an efficient allocation of capital.