Unconventional monetary policy

(UMP).

Monetary policy is central government or other policy to stimulate or otherwise influence economic activity by influencing money supply or interest rates.

Historically, mechanisms for influencing the money supply have included the use of open market operations, the central bank discount rate and reserve requirements.

'Unconventional' monetary policy includes:

• Quantitative easing (asset purchase programmes)
• Forward guidance
• Negative interest rates
• New central bank lending operations

Also known as 'non-standard' monetary policy.

See also

• Forward guidance
• Lending operations
• Negative interest rate policies
• Quantitative easing
• Reserve requirements
• Sterling Monetary Framework
• Supply side policy
• Zero lower bound
• ZLB problem