QE experiences and some lessons for monetary policy: defending the important role central banks have played

Article by Mr Luiz Awazu Pereira da Silva, Deputy General Manager of the BIS, and Mr Phurichai Rungcharoenkitkul, Senior Economist, for the Eurofi High Level Seminar 2017, Malta, 5-7 April 2017.

The last decade has seen a number of innovations in monetary policymaking, as major central banks grappled with the global financial crisis and persistently low inflation. These unconventional monetary policies have played a critical role in putting an end to the confidence crisis and averting the prospect of a more prolonged recession. At the same time, their medium-term macroeconomic benefits and associated risks have been more difficult to assess. Moreover, the burden on monetary policy has moreover become excessive, and a greater emphasis should be placed on structural reforms and other growth-enhancing policies. But in a world where well tested policies are increasingly receiving criticisms, often unjustified, it is important to defend sound policymaking, including central banks' responses during the global financial crisis.