Zero Bound Constraint and Unconventional Monetary Policy:The Comparison of Theoretical Effects and Actual Results

In the global financial crisis,the central banks implemented zero interest rate monetary policy,also resorted to unconventional monetary policy such as quantitative easing at zero bound constraint.To this end,the study first explores unconventional monetary policy measures and channels through which can be effective at zero bound constraint theoretically;and then uses the financial markets and macroeconomic data combining with the latest empirical research,and compares the actual results with theoretical effects of unconventional monetary policy comprehensively.Overall,unconventional monetary policy can indeed reduce the long-term real interest rates through several theoretical channels,however the effects of credit expansion and stimulating aggregate demand is limited to date.Further,the paper explores the reasons why unconventional monetary policy is unsatisfactory.