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The following questions are concerned with scenarios when conventional monetary policy is ineffective – typically during and in the wake of crisisa) when the central bank chooses to pursue "unconventional" monetary policy it means that conventional expansionary policy is not having its desired effect. what are banks probably doing that is preventing the policies in the previous question from having their intended effect? why are banks doing this? b) quantitative easing and credit easing are two complementary variations of unconventional monetary policy. what is quantitative easing and what does it have in common with some conventional policy objectives? how does credit easing try to overcome the constraints arising from the previous question?
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