Editing Central bank (section)

==== Unconventional monetary policy ====
Other forms of monetary policy, particularly used when interest rates are at or near 0% and there are concerns about deflation or deflation is occurring, are referred to as '''unconventional monetary policy'''. These include [[Quantitative easing#Credit easing|credit easing]], [[quantitative easing]], [[forward guidance]], and [[Signalling (economics)|signalling]].<ref>{{cite magazine|last1=Roubini|first1=Nouriel|date=January 14, 2016|title=Troubled Global Economy|url=https://time.com/4180698/nouriel-roubini-global-economy/|access-date=5 February 2016|magazine=[[Time (magazine)|Time]]}}</ref> In credit easing, a central bank purchases private sector assets to improve liquidity and improve access to credit. Signaling can be used to lower market expectations for lower interest rates in the future. For example, during the credit crisis of 2008, the [[US Federal Reserve]] indicated rates would be low for an "extended period", and the [[Bank of Canada]] made a "conditional commitment" to keep rates at the lower bound of 25 basis points (0.25%) until the end of the second quarter of 2010.

Some have envisaged the use of what Milton Friedman once called "[[helicopter money]]" whereby the central bank would make direct transfers to citizens<ref>{{Cite book|last=Baeriswyl|first=Romain|title=Monetary Policy, Financial Crises, and the Macroeconomy|date=2017|publisher=Springer, Cham|isbn=9783319562605|pages=105–121|language=en|chapter=The Case for the Separation of Money and Credit|doi=10.1007/978-3-319-56261-2_6|s2cid=168667912 }}</ref> in order to lift inflation up to the central bank's intended target. Such policy option could be particularly effective at the zero lower bound.<ref>{{Cite web|title=The Simple Analytics of Helicopter Money: Why It Works – Always – Economics E-Journal|url=http://www.economics-ejournal.org/economics/discussionpapers/2014-24|access-date=2017-11-12|website=www.economics-ejournal.org|language=en|archive-date=13 November 2017|archive-url=https://web.archive.org/web/20171113005504/http://www.economics-ejournal.org/economics/discussionpapers/2014-24|url-status=live}}</ref>