Monetary policy and balance sheet adjustment

  • In the wake of the Global Financial Crisis that started in 2007, policymakers were forced to respond quickly and forcefully to a recession caused not by short-term factors, but rather by an over-accumulation of debt by sovereigns, banks, and households: a so-called “balance sheet recession.” Though the nature of the crisis was understood relatively early on, policy prescriptions for how to deal with its consequences have continued to diverge. This paper gives a short overview of the prescriptions, the remaining challenges and key lessons for monetary policy.

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Author:Otmar IssingGND
Parent Title (English):SAFE white paper series ; 15
Series (Serial Number):SAFE white paper series (15)
Place of publication:Frankfurt am Main
Document Type:Working Paper
Date of Publication (online):2014/06/17
Date of first Publication:2014/06/17
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2014/06/30
Tag:balance sheet adjustment; monetary policy; recession
Page Number:9
Last Page:7
Institutes:Wirtschaftswissenschaften / Wirtschaftswissenschaften
Wissenschaftliche Zentren und koordinierte Programme / House of Finance (HoF)
Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS)
Wissenschaftliche Zentren und koordinierte Programme / Sustainable Architecture for Finance in Europe (SAFE)
Dewey Decimal Classification:3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoDeutsches Urheberrecht