Monetary Policy after the Great Recession - 9780367621889

Taylor & Francis

Monetary Policy after the Great RecessionThe Role of Interest Rates\nAuthor(s): Arkadiusz Siero?\nFormat: Paperback\nPublisher: Taylor & Francis Ltd, United Kingdom\nImprint: Routledge\nISBN-13: 9780367621889, 978-0367621889\nSynopsis\nWalter Bagehot noticed once that John Bull can stand many things, but he cannot stand two per cent. Well, for several years, he has had to stand interest rates well below that, in some countries even below zero. However, despite this sacrifice, the economic recovery from the Great Recession has been disappointingly weak. This books aim is to answer this question. \n\nThe central thesis of the book is that the standard understanding of the monetary transmission mechanism is flawed. That understanding adopts erroneous assumptionssuch as, that low interest rates always stimulate economic growth by boosting the credit supply, investment, and consumptionand does not fully take into account several unintended channels of monetary policy, such as risk-tak.