A Study on the Development and Effectiveness of “Quantitative and Qualitative Monetary Easing” : Roles and Limitations of Monetary Policy

application/pdfThis paper summarizes the development and challenges of “quantitative and qualitative monetary easing,” which was introduced in 2013 and has since opened up new areas of policy tools such as negative interest rates and “yield curve control.” It makes clear that in an economy in a “liquidity trap,” monetary policy can only prepare the investment environment by lowering interest rates and cannot revive the economy or create inflation expectations. Monetary policy, on the other hand, is a very effective policy to curb the overheating of the economy. In this paper, I examine the limits and the role of the current monetary policy, which have become apparent during the ten years of “quantitative and qualitative monetary easing.”departmental bulletin pape