Quantitative Easing Forever? Financialisation and the Institutional Legitimacy of the Federal Reserve’s Unconventional Monetary Policy

Antti Ronkainen, Ville-Pekka Sorsa

Research output: Contribution to journalArticleScientificpeer-review

6 Citations (Scopus)

Abstract

Scholars of financialisation have argued that the emergence of finance-led grow regimes requires new instruments for effective conduct of economic policy. In this scholarship, central banks have been seen as the most promising actors to utilise one of the most synergetic policies, the maintenance of high and stable prices of financial assets. Since the financial crisis of 2007-08, central banks of the developed world have adopted various unconventional monetary policy measures that serve this function. But will these unconventional measures become institutionally legitimate and institutionalised as conventional practice, as suggested necessary by scholars of financialisation? In this paper, we answer to this question by studying the institutional legitimation of the Federal Reserve’s Quantiative Easing (QE) programs. We argue that the QE programs have been legitimated successfully but with institutional legitimation strategies, which cause institutional pressures that question the potential of QE from becoming a regular policy instrument and practice.
Original languageEnglish
Peer-reviewed scientific journalNew Political Economy
Volume23
Issue number6
Pages (from-to)711-727
ISSN1356-3467
DOIs
Publication statusPublished - 18.09.2018
MoE publication typeA1 Journal article - refereed

Keywords

  • 517 Political science
  • central banks
  • The Federal Reserve
  • financial stability
  • financialisation
  • institutional legitimacy
  • Quantitative Easing
  • legitimation
  • 512 Business and Management

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