Spillovers to EMEs It is widely perceived that in absence of unconventional monetary policy measures, financial sector meltdown and recession, particularly in advanced economies, would have been more severe, which in turn could have significantly impacted the global economy.1 However, opinion remains divided on the efficacy of prolonged recourse to unconventional monetary policy.
Monetary policy strategy As I noted at the outset of my talk, the federal funds rate is quite low: It is low relative to interest rates associated in the past with sustained high employment and stable prices; and it is low relative to recent rates of economic growth - a disparity that has attracted increasing attention from some observers.