Yield Curve Control Versus Other Increasingly Ineffectual Monetary Policy Tools

1:45 PM - 2:45 PM

In this session, yield curve control (YCC) will be evaluated against five monetary tools that have already been tried with increasingly disappointing results for U.S. economic performance. These other tools include:  policy rate changes; effects of both quantitative easing and tightening operations, also known as QE and QT; cooperation with the depository institutions, which must transmit any successful central bank operation to the broader economy; signaling, which is a favorite for stock market investors, but at the cost reduced growth in the standard of living; and coordination of monetary and fiscal policy, the main feature of the governmental response to the pandemic of 2020-21.

Learning Objectives:

  • Learn about the key six transmission mechanisms of central bank policy
  • Evaluate alternative monetary policy actions
  • Understand how yield curve control may be a better alternative than policies already extensively tried and failed

Session Content Level: Advanced