REPUBLIKA.CO.ID, WASHINGTON--The unconventional monetary policies undertaken by major central banks are considered helpful and beneficial to support the recovery of global economy. The International Monetary Fund (IMF) says that such policies can help the global economy to restore its stability after the financial crisis in 2008.

One of these unconventional measures is large-scale asset purchases, which are intended to lower long-term interest rates. Another measure is known as forward guidance, communication about the central bank--one of the case is Fed's--expectations for future policy that is intended to guide market expectations and reduce policy uncertainty.

IMF assumes this uncoventional monetary policies can counter volatile financial markets if the central bank can clearly communicate their plan.

The US Federal Reserve (the Fed) previously has said that the time might be coming soon for US to begin tapering quantitave easing program. Meanwhile IMF, said IMF First Deputy Managing Director David Lipton, has urged the Fed to have dialogue with other countries to share the possible impacts of their policies to the rest of the world.

''And so the world can understand the path the Fed is likely to follow,'' said Lipton in interview related to a 2013 IMF and World Bank Annual Meeting in Washington DC, this week.

Report: by Elba Damhuri from Washington D.C

Ikuti Whatsapp Channel Republika