The latest on the crisis from the Research and Monetary and Capital Markets Departments at the IMF.

This paper examines the unconventional monetary policy actions undertaken by G-7 central banks and assesses their effectiveness in alleviating financial market pressures and facilitating credit flows to the real economy.  Section II considers the menu of options for unconventional tools of monetary policy. Section III discusses the approaches pursued by major advanced country central banks to resolve the crisis.  Section IV provides a discussion of the effectiveness of these approaches, by examining their impact on key financial market indicators.  Section V looks into the issues relating to the exit from large-scale central bank interventions.  Section VI contains concluding remarks.

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