C.  Communication strategy as a nontraditional accommodative monetary policy  It is widely known that theoretically one alternative accommodative monetary policy under the zero lower bound is to introduce forward guidance by committing to the continuation of a more accommodative policy than would otherwise have been anticipated with the normal  BIS central bankers’ speeches  3  policy reaction function.
In the technical sessions, the First Session on “conducting monetary policy post-crisis: challenges to transmission mechanism and operating framework” focused on whether the framework of monetary policy needs to be re-designed in the light of lessons drawn from the crisis. Leading the discussion, Professor Benjamin Friedman drew attention to the interplay between financial stability and responsive monetary policy.