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Review, 111. Retrieved from Berger, H., de Haan, J. & Eijffinger, S.C.W. (2001). Central bank independence: an update of theory and evidence. Journal of Economic Surveys, 15(1), 3-40. Borio, C. & Zabai, A. (2016). Unconventional monetary policies: a re-appraisal. BIS Working Papers, 570. Retrieved from Capie, F. (1995). The Evolution of General Banking. Policy Research Working Paper 1534, The World Bank. Retrieved from

Policy since the Onset of the Crisis, Remarks at the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming, 2012.09.31., Online: . BLANCHARD, O., CERUTTI, E., SUMMERS, L., (2015), Inflation and Activity - Two Explorations and their Monetary Policy Implications, IMF Working Papers, 2015/230. BORIO, C., DISYATAT, P., (2010), Unconventional monetary policies: an appraisal, The Manchester School , Vol. 78, pp.53-89. DOI: 10.1111/j.1467-9957.2010.02199.x BRŮHA, J., TONNER, J

References 27.Acharya, V. V., Eisert, T., Eufinger, C., & Hirsch, C. (2015). Whatever it takes: The Real Effects of Unconventional Monetary Policy. IMF Working Paper. 28. Altavilla, C., Giannone, D., & Lenza, M. (2014). The financial and macroeconomic effects of OMT announcements. ECB Working Paper no 1707. 29. Andrade, P., Breckenfelder, J., De Fiore, F., Karadi, P., & Tristani, O. (2016). The ECB's asset purchase programme: an early assessment. ECB WP 1956. 30. Andrade, P., Cahn, C., Fraisse, H., & Mesonnier, J.-S. (2015). Can the provision of long

Reinhart, V. R. (2004). Conducting monetary policy at very low short-term interest rates. American Economic Review , 94(2):85–90. Blanchard, O., Cerutti, E., and Summers, L. (2015). Inflation and activity–two explorations and their monetary policy implications. Technical report, National Bureau of Economic Research, No w21726. Blinder, A. S. et al. (2010). Quantitative easing: entrance and exit strategies. Federal Reserve Bank of St. Louis Review , 92(6):465–479. Borio, C. and Disyatat, P. (2010). Unconventional monetary policies: an appraisal. The Manchester School


After the outburst of the recent financial crisis, the subsequent unconventional monetary acting that seemed to be a veritable revolution tends to become a norm. This paper makes an effort to employ the modern monetary theory framework to address the nowadays recession in the Eurozone through the prism of debt perpetuation and the more drastic helicopter money drops. Dynamics of debt monetization and issues of its sustainability are examined in connection to its free liquidity injections capacity. The aim of this paper is to try to cast some light on the potential of overt money financing in the Eurozone (EZ) and its consequences on the ECB’s credibility and the maintenance of its efficacy.


The first central banks were founded in the XVII century and monetary policy has been evolving ever since. Knowledge on monetary economy has improved significantly over the last couple of decades and a consensus has been reached in a number of areas. As a result, hyperinflations have been extremely rare over the past decades.

The global financial crisis challenged traditional monetary policy that was based on the approach involving one instrument (reference interest rate) and one goal (price stability). It is obvious that we need a new approach to monetary policy and I believe that changes will happen gradually in the future.

This paper consists of two parts. The first part covers the traditional monetary policy and deals with issues where consensus has been reached, as well as with issues on monetary policy objectives, transparency, and macroprudential policy.

The second part addresses the issues that pose a challenge for monetary policy and for which there is no complete consensus. This part elaborates on the dilemma involving rules versus discretions, a new approach to banking supervision, monetary policy during a crisis, the role of econometric models, and the need for international coordination of monetary policy.


In the aftermath of the UK referendum on June 23rd, 2016 that resulted in a sonorous negative decision regarding the willingness of the British people to remain in the EU, a significant number of alarming questions have emerged. Although Europe should have forged in crises, nowadays, many compromises have to be made in order to maintain the European construction as intact as possible. The question we attempt to answer is whether a new phase of unconventional monetary policy in the form of QE would be appropriate to lessen the threat of an upcoming crisis. This is why we examine Eurozone QE perspectives through the prism of the new EU era without the UK in order to highlight the pros and cons of the historical Brexit decision. As new rounds of unconventional monetary policy are believed to be essential for supporting the weaker countries in the European south, perspectives of non-conventional success could alter and optimal policies be substantially reformulated subject to the newly-arising constraints. Based on the main scenarios about the UK’s relations to the European Union in the near future, we estimate how a new round of non-conventional measures could affect the Britons as well as the European citizens. Moreover, we try to assess the viability of each of these outcomes through the spectrum of a monetary-driven decision-making.


Price stability supports accelerated economic growth (GDP), thus the main objective of most central banks is to ensure price stability. The South African economy is experiencing a unique monetary policy dilemma, where a high inflation rate is accompanied by high interest rates and low GDP. This is an unconventional monetary policy scenario and may hold strenuous repercussions for the South African economy. This dilemma was held as the rationale behind this study. The study investigated the effectiveness of the use of the repo rate as an instrument to facilitate price stability and GDP in South Africa. Long-run, short-run and casual relationships between interest rates, inflation and GDP were therefore analyzed. The methodology is based on an econometric process which included a Johansen co-integration test, with a Vector Error Correction model (VECM). Casual relationships were also tested using Granger causality tests. Results of the Johansen Co-integration test indicated the presence of co-integrating long-run relationships between the variables and a significant and negative long-run relationship between the repo rate and inflation rate was revealed, whereas GDP and inflation rate exhibited a significant and positive long-run relationship. The study also found short-run relationships between inflation and GDP, but not for inflation and the repo rate. Further areas of potential research may fixate towards the assessment of other significant alternative policy tools which may be utilized by various countries’ monetary policy authorities to influence supply specific inflationary pressures led by the cost-push phenomena, especially in the short-run.

). Amplification effects and unconventional monetary policies, Theoretical and Applied Economics , 19 (2), 13-30. 8. Bastidon, C., Huchet N., Kocoglu Y. (2014). “Unconventional monetary policy in the euro zone : a lack of forward guidance”, 2 nd International Conference on Debt Crises and Financial Stability: Global Issues and Euro-Mediterranean Perspectives, Toulon, France. 9. Benmelech, E. and Bergman, N. (2012). Credit Traps, The American Economic Review , 102 (6), 3004-3032. 10. Bernanke, B. S. and Reinhart, V. R. (2004). Conducting monetary policy at very low short

References Abbassi, P., and Linzert, T., 2012. The effectiveness of monetary policy in steering money market rates during the financial crisis. Journal of Macroeconomics, 34(4), 945-954. DOI: Angelini, P., Neri, S., and Panetta, F., 2011. Monetary and macroprudential policies. Bank of Italy, Economic Working Papers(801). Baumeister, C., and Benati, L., 2010. Unconventional monetary policy and the great recession estimating the impact of a compression in the yield spread at the zero lower bound. ECB Working Papers