Essays on Conventional and Unconventional Monetary Policies

Yichen Shao, Fordham University


This dissertation consists of three self-contained essays which study the conventional and unconventional monetary policies adopted by the Federal Reserve, their impacts and effects on macro economy and their transmission mechanisms through commercial banking system. In the first chapter, I verified that discrepancies are observed in macroeconomic performances and the central adopted a discretionary Taylor type rule. In the second chapter, I found that among the two unconventional policy tools, Forward Guidance has most impacts on short and midterm yields, while Large Scale Asset Purchase have most impacts on the longer end of the treasury yield curve. The responses when the unconventional policies are taken as exogenous shocks are similar to the standard responses from a standard federal funds rate shock. In the third chapter, I obtained evidence from bank level data and regressions so support the view that the bank lending channel still presents at the bank institutional level, and the banks funding sources play a more important role since the Great Recession in transmitting the monetary policies.

Subject Area

Economics|Economic theory|Public policy|Banking

Recommended Citation

Shao, Yichen, "Essays on Conventional and Unconventional Monetary Policies" (2021). ETD Collection for Fordham University. AAI28499368.