Definition of unorthodox monetary policy

Any policy undertaken, usually by central banks, that operates outside the usual parameters for influencing either the price or the quantity of money in an economy.

In 2009, the Federal Reserve, European Central Bank and Bank of England among others implemented forms of unorthodox monetary policy. The Bank of England's policy of quantitative easing, for example, created large amounts of new money and used this to purchase government bonds, thereby pumping funds into the economy.  [1]

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