Monetary Policy of the ECB as Responses to the Crisis: Consideration of Unconventional Monetary Policy with a Focus on QE

Abstract

This paper considers the significance of unconventional monetary policies, in particular, Quantitative Easing implemented by European Central Bank during the post-euro crisis. There are problems in Euro area such as disinflation, low economic growth and interest rate spread between core and periphery country. The ECB deal with these problems by lower interest rate, portfolio rebalance and signal effect caused by QE.