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.
