Many Central Banks Around the World Are Implementing Unconventional Monetary

question 102

Multiple Choice

Many central banks around the world are implementing unconventional monetary policies combined with short-term nominal interest rates being zero or near zero, having excessive levels of reserves and unusually high leverage ratios.What is the consensus among economists on the outcome?

• A)permanently higher unemployment rates
• B)increased inflation rates in the long run
• C)amplified negative response of the economy to unfavourable shocks and damped positive response to favourable shocks
• D)lower inequality in the distribution of income
• E)There is no consensus.

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