Publication

As the financial crisis ends, the recession bottoms out, and recovery begins around the world, central banks are under pressure to work out their exit strategy from various forms of unconventional monetary policy, including quantitative easing, credit easing, and in the case of the ECB, enhanced credit support programs. In this policy brief, we discuss issues related to exit strategies by central banks. What considerations receive importance when contemplating an exit strategy? What tools are available when the time comes for tightening monetary policy? Do central banks need new tools to implement monetary policy?