The Crisis Management of Central Banks

Summary:

The Global Financial Crisis and its impacts on financial markets have presented major challenges to the crisis management of central banks. The intensification of the Global Financial Crisis and the ongoing European debt crisis revealed that standard-monetary policy were no longer sufficient to effectively counter the financial crisis.

As a result, central banks, including the European Central Bank (ECB) have been very creative in adopting new, unconventional monetary policy measures which are discussed in this paper, in order to prevent the global economy from drifting into deflation and depression.