The role of a central bank's balance sheet in shaping the economy (ARC Discovery Project administered by QUT) (2021–2024)
Abstract:
In response to the global financial crisis, the world¿s major central banks cut their rates to near zero and
implemented untested unconventional monetary policies, significantly expanding the size and composition of their
balance sheets. More than a decade later, the Reserve Bank of Australia is considering similar balance sheet
policies. This proposal aims to develop various frameworks that can be used to simulate and evaluate when and
how to eventually undo unconventional monetary policies in order to prevent a prolonged recession. Thus this
research proposal will contribute to the current Australian monetary policy debate while providing some insights
on how best to implement such policies, improving the living standards of Australians.