Monetary policy during the Global Financial Crisis was unusual because

Question

Quizplus · Accepted Answer

Lowering interest rates is a conventional tool used by central banks to stimulate borrowing and spending, thereby increasing aggregate demand. However, during the Global Financial Crisis, lower interest rates did not have the expected effect on the economy. This was due to various factors, such as a decrease in confidence and a lack of credit availability. Therefore, the monetary policy implemented during this time was considered unusual.

Monetary Policy During the Global Financial Crisis Was Unusual Because