The Financial Crisis, Transformation of Monetary Policy and the Evolution of the Eurozone’s Economy

Abstract

This paper will aim to analyze the effects of unconventional monetary policies on European countries. In order to do so, there is a description of context due to which monetary policy had to evolve so as to be effective. After commenting on such evolution and the new practices, a discussion is presented on the potential causes for the crisis found on academic literature. Last but not least, in the light of the relevant causes, we will analyze the evolution of key macroeconomic variables; real GDP, employment, credit, stock prices and volatility after the introduction of unconventional monetary policies as well as other adverse effects that followed central banks actions