Unconventional Monetary Policies Shake Up Financial Markets and Inflation Rates
The article discusses how monetary policy affects financial markets, inflation, and the real economy. It explains that central banks use monetary policy to control inflation and economic growth. The paper explores how traditional and unconventional monetary policies impact asset prices. Despite low interest rates, central banks can still influence the economy. Many countries have used unconventional policies since the financial crisis. However, these policies have limits and side effects. The article also talks about the implications of tapering these policies.