The Impact of Monetary Policy

This book analyzes monetary policy responses to macroeconomic events and major economic shocks and, in turn, measures the impact of central bank monetary policy on the real economy and financial markets. Presenting case studies on the 2008 financial crisis and other exogenous shocks such as Brexit and the COVID19 pandemic, it examines how central banks like the Federal Reserve, the European Central Bank, and the Bank of England responded to these events and how these institutions and policymakers communicated the resulting policy actions. Subsequently, the book illustrates various communication strategies used by policymakers and demonstrates how financial markets have responded to policy announcements and other central bank actions. In closing, it examines the impact of monetary policy innovations on asset markets and reviews the literature on the effects of monetary policy and the policy instruments developed by the discipline. Accordingly, it will be of interest to scholars of monetary economics as well as professionals working for central banks and other financial institutions.