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Anatomy of Transmission Unconventional Monetary Policy

Anatomy of Transmission Unconventional Monetary Policy

Journal of Economic Regulation, , Vol. 10 (no. 1),

The paper focuses on finding distinctive features of the transmission mechanism of unconventional monetary policy measures: quantitative easing and credit easing. The analysis carried out in the paper suggests that the transmission of traditional and unconventional monetary policy measures is fundamentally different only at the initial stage of the transfer mechanism: the impact of monetary shock on the financial market. At the middle stage (the impact of the financial market parameters on the behavior of macroeconomic agents), as well as at the final stage (the impact of macroeconomic agents' behavior on the real sector), the transmission mechanism of unconventional measures (quantitative easing and credit easing) is similar to traditional measures. Distinctive features of the impact of unconventional policy measures on the financial market are their directional, targeted, character, as well as the novelty of the impact of mode: in quantitative easing, the transfer of monetary shock goes through a change in reserves; private assets.

Keywords: transmission of monetary policy; policy of the Central Bank; quantitative easing; credit easing

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