The Research On Unconventional Monetary Policy’s Theory And Practical Experience

Since the first time use of the Bank of Japan in2001, unconventional monetary policy becomes the main policy tools in the major economies to stimulate the economy. In this particular context, the study of unconventional monetary policy transmission channels, the effectiveness of its impact and the role of money policy become significant importance. This article will draw on2001-2006Japan’s loose monetary policy practice research methods, combined with the characteristics of the new context of the Fed quantitative easing monetary policy implementation, to study the theoretical framework of the policy, practice operations, conduction mechanism.This paper attempts to address the following four questions. First of all, why the central bank needs to unconventional monetary policy operations? Not a proven policy implementation timetable that take unconventional monetary policy when the central bank should be. Whether the implementation of unconventional monetary policy only when the nominal interest rate reaches the zero lower bound moment, or in the level of nominal interest rates is positive we can use. Secondly, what is the main characteristics and conduction mechanisms of unconventional monetary policy? Where is the difference between it and conventional monetary policy? Again, if you need the involvement of unconventional monetary policy, how the central bank should be to implement these policies? As every country has its own economic situation and the financial system, the influence of the unconventional monetary policy is also not the same. We need to distinguish between different types of unconventional monetary policy, such as quantitative easing or credit easing, each of which unconventional monetary policy has a different effect. Finally analysis the challenges that the central bank should face. Such as the communication of unconventional policy, the relationship between fiscal policy and unconventional monetary and the time to exit unconventional monetary policy operations? Unconventional monetary policy is not the ordinary mode of operation of monetary policy, nor should it become the norm in policy operation, when the central bank decided to use unconventional monetary policy, they need to consider those challenges. Countries ongoing use the unconventional monetary policy has a very important significance to solve these problems, and can provide a theoretical support and practical guidance system for the new currency regulation and control.The main structure of this paper is as follows:First, starting from the definition of unconventional monetary policy, introduces the theoretical framework of unconventional monetary policy, including the policy objectives of the unconventional monetary policy transmission mechanism, policy tools. Then compared the Japan, the United States and the European Union unconventional monetary policy practice content and practical effect, found that due to the country’s economic structure and financial system, the use of its unconventional monetary policy direction and The effect is also different. Unconventional monetary policy as a new monetary policy, there is a lot yet to be perfected. Therefore, the unconventional monetary policy, it also faces many challenges. Finally, we come to a conclusion about the unconventional monetary policy: operation of unconventional monetary policy needs to consider a lot of problems. For example, the entire economic and financial market environment and structure, deflationary pressures, the effectiveness of monetary policy under the zero lower bound, and the risk of policy exit and so on.From the practical effects of unconventional monetary policy operations can get the following conclusions:l,the interest rate cut policy is useful but not enough policy to deal with financial crisis.2,the use of unconventional monetary policy is successful on stimulating output and control price level.3,in order to solve the financial crisis problem, we should not all depend on the use of unconventional monetary policy, what we should do is to develop the financial market structure and optimize the monetary structure.