Khawla Jasim Mohammed, Kamal Kadem Jawad

Abstract

The research highlights the measurement of the impact and correlation between indicators of unconventional monetary policy instruments, represented by variables (GDP, net primary income), on the financial crisis recovery indicators for the research sample countries (the United States of America). This is done through quantitative analysis of time series data (2006-2021). This is achieved by using banking stability indicators as intermediate indicators, represented by variables (term guidance and credit facilitation). The research problem is manifested in the inability of traditional monetary policy instruments to address financial crises, which necessitates the existence of an unconventional monetary policy that plays a role in financial crisis recovery. The researcher reached a set of results, most notably the existence of a statistically significant direct correlation and impact of unconventional monetary policy instruments on crisis recovery indicators. This impact was evident in the relationship between the forward guidance and credit facilitation indicators and the profitability index, in addition to their correlation with the GDP index. One of the most important recommendations reached by the research is the necessity of adopting unconventional monetary policy tools, especially the forward guidance tool regarding future interest rates. The recommendations also included proposals for the financial and banking sector regarding the application of these tools in response to recurring financial crises.

Keywords

Unconventional monetary policy- financial crises and their repercussions- Banking stability.