Some Thoughts On The Divergent Conduct In Central Banking

In the recent post-crisis years, the monetary policy, especially of central banks in the advanced economies, is marked by the limited space for handling the conventional instruments. This feature is a defining one to reflect the new challenges faced the monetary authority, because it has complex repercussions at the global level of the economy. There is a vast literature dealing with the new challenges for central banks, but in this paper we will focus on presenting the reactions of central banks to the new post-crisis conditions, in order to highlight the differences or similarities of their policy conduits. In our view, the post-crisis age for central banking is related not only to the time for adapting the monetary policy framework at the challenge of the narrow room for policy manoeuvre, but also to the time of potential divergent paths for conducting the monetary policy, in the global perspective.