Economic Analysis of the Legal Framework for Non-Conventional Instruments by the European Central Bank

This study delves into the significance and effectiveness of unconventional monetary policy measures adopted by central banks within the current economic policy framework. These measures are employed when conventional tools prove inefficient in stimulating or stabilizing the economy, influencing interest rates, inflation, and economic activity. The hypothesis will be tested through quantitative analysis, encompassing macroeconomic data and time series analysis, and examining various economic schools and theories. Additionally, potential long-term problems associated with these measures will be explored. The expected conclusions of this analysis aim to demonstrate that unconventional measures implemented by central banks have the potential to significantly impact the economy, particularly during economic crises. It is anticipated that “Quantitative Easing” will provide increased liquidity to the financial system and lower long-term interest rates. Furthermore, the study will assess potential side effects, such as income inequality, financial risks, price distortions, or the formation of asset bubbles. This research underscores the critical importance of unconventional monetary policies in contemporary economic discourse while scrutinizing their long-term implications.