What is the Normal Rate of Interest?

What is the Normal Rate of Interest?

Kent discusses the history and future of monetary policy and outlines some potential consequences if policy makers were to rush the unwinding of quantitative easing.
Overview

Monetary policy is introduced as setting and achieving policy objectives. The actions of the Bank of England during the financial crisis are described by its use of interest rates and quantitative easing to prop up markets during the downturn.

Key learning objectives:

  • The actions of central banks during the crisis of 2008

  • Quantitative easing and its effects on markets

  • How we can return to pre-crisis levels of monetary policy

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Summary
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Expert
Kent Matthews

Kent Matthews

Kent is an academic who has studied at several institutions including the London School of Economics and the University of Liverpool. He is now a Professor of Banking and Finance at Cardiff Business School.

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