An Analysis of the Literature on International Unconventional Monetary Policy

This paper evaluates the literature on international unconventional monetary policies (UMPs). Introducing market segmentation, limits-to-arbitrage, and time-consistent policy in standard models permits a theoretical role for UMP. Empirical studies provide compelling evidence that UMPs influenced asset prices tail risk desired manner. Calibrated modeling vector autoregressive (VAR) exercises imply these also improved macroeconomic outcomes. We assess recent debate empirical discuss central bank assessments of Despite qualified successes, we recommend UMP be reserved crises and/or when zero bound constrains conventional policy. (JEL E31, E43, E44, E52, E58, G12, G21)