Highly Accommodative Monetary Policy The financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative monetary policies. Isolating the effects of these policies is challenging, but studies generally show that they lowered rates across the curve and moved other asset prices as well.
1 It is even more challenging to evaluate their effects on aggregate demand. Low rates and higher asset prices should support household and business spending and  1 Williams (2014) compiles the results from a range of studies estimating the effect of the Federal Reserve’s large-scale asset purchases (LSAPs).