Abstract:

The aim of this study is to examine the monetary policy instruments of the European Central Bank (ECB), the Bank of England (BoE) and the Swiss National Bank (SNB). Moreover, the monetary policy of these three central banks is to investigate how these countries affected their economies before and during the crisis period. The central banks, who found their way out of Great Depression in 1929 in fiscal policy, are looking for a way out of the financial crisis in 2008, which is still going on, in monetary policy. Central banks entered duty and tried to overcome the crisis by implementing loose monetary policy. First BOE implemented the loose monetary policy and succeeded. Seeing that the BOE was successful, the ECB followed a loose monetary policy following the BOE and then supported the implementation with low interest rates and even negative interest rates. Then SNB applied negative interest rates due to the causes below: Instead of bringing money to bank, credit is given to the market. If the money is brought to the bank, it means there is a need to pay for it. It aims to stimulate the economy by trying to give credit to the market in this way. Another reason is to provide liquidity support to the market through monetary expansion and stimulate the economy by pushing inflation upwards.

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