In fact, former Fed Chairman Bernanke has quipped that “[t]he problem with QE is it works in practice, but it doesn’t work in theory.” Given that different countries and regions have different financial systems, I think that when examining the impact of quantitative easing it is necessary not only to focus on the financial markets in which large-scale asset purchases are conducted but also to explicitly take into account such differences, for example in the transmission mechanisms in the financial systems.
V.  Monetary policy rules  I would now like to slightly change the topic and consider unconventional monetary policy and monetary policy rules. 4  Neil Wallace, “A Modigliani-Miller Theorem for Open-Market Operations,” American Economic Review, Vol. 71, No. 3, 1981, pp. 267–274. 5  Franco Modigliani and Richard Sutch, “Innovations in Interest Rate Policy,” American Economic Review, Vol. 56, No.