I don t think monetary policy, even unorthodox monetary policy, can do the job.

The traditional argument for an independent central bank is that politicians can t be trusted to conduct monetary and macroeconomic policy. Neither, evidently, can central bank governors, at least when they opine in areas outside their immediate responsibility.

By creating the impression that something beneficial is being done, unconventional monetary policy relieves pressure on politicians.

Leaners of Last Resort

China s Monetary Policy Choice

The West s Punch Bowl Monetary Policy

China s Monetary Policy Surprise

The same dangers arise for monetary policy.

1. Strongly anti inflationary monetary policy.

Shinzo Abe s Monetary Policy Delusions

It is responsible for Swiss monetary policy and for issuing Swiss franc banknotes.

The Bank of England s Monetary Policy Committee has often been presented as a pioneer in making monetary policy transparent.

A Cautionary History of US Monetary Tightening

Is US Monetary Policy Made in China?

We call this monetary policy.

This is not to say that sudden normalization of monetary policy is a good idea. But, if large scale investment and reform programs were initiated as complements to unconventional monetary policy measures, the economy could move onto a more resilient growth path.

Moreover, only a small portion of the liquidity created by unconventional monetary policy has been channeled toward households and the small and medium size enterprises that generate most new jobs.

Finally, monetary policy has been far too loose.

Because fiscal policy did not stimulate the economy, a greater burden was placed on monetary policy.

1. Strongly anti inflationary monetary policy.

The objectives of the new monetary policy approach are admirable.

The delegation of monetary policy to an independent central bank is the archetypal example in the service of price stability, daily management of monetary policy is insulated from politics.

The discussion of monetary policy is especially divisive.

Monetary policy is a more complex and difficult balancing act.

The new FPC must give its advice publicly to the MPC when it has concerns.

The Fed will clarify the direction of US monetary policy.

Its fear of wayward monetary policy is not.

Nor could monetary policy help very much. Quantitative easing is constrained by above target inflation in the eurozone and UK.

But monetary tightening would weaken already slow growth.

But monetary policy had little to do with it.

Advanced countries moved to prevent a downward spiral using monetary and fiscal policy tools.

Monetary policy is usually the first line of defense in such situations.

Monetary policy, incidentally, did not feature prominently in Bernanke s diagnosis.

But monetary policy typically focuses on domestic recovery. And, though unconventional measures have reduced financial instability, their effectiveness in countering widespread deflationary pressures or restoring growth remains dubious.

Finally, there is a risk of losing sight of any road back to conventional monetary policies.

That was why monetary policy could be managed with greater flexibility.

Call them fiscal policy, credit policy, monetary policy, and inflation.

Monetary policy cannot make safe wealth in the future any more valuable.

That is why good monetary policy aims to prevent bubbles from arising.

Zhou is an intelligent and internationally respected expert on monetary policy and finance.

Monetary policy itself has shifted to a far greater focus on inflation.

An independent monetary policy requires a flexible exchange rate, not a revaluation.

In China, unlike in advanced countries, monetary and sterilization policy are often one in the same. The degree to which monetary policy is expansionary depends on the degree to which the liquidity created by currency market intervention has been sterilized.

With growth anemic in most advanced economies, the rally in risky assets that began in the second half of 2012 has not been driven by improved fundamentals, but rather by fresh rounds of unconventional monetary policy.

Ninth, QE and other unconventional monetary policies can have serious unintended consequences.