The unconventional monetary policies implemented by the Bank of England, the US Federal Reserve and the European Central Bank in response to the financial crisisThe extent of the financial crisis following the collapse of Lehman The brothers in September 2008 caused the market activity to decrease and the globalized economy to grow. A large number of problems, such as deflation, reduction of capital liquidity and so on, confront every government and central bank as well as having a significant negative effect on the development of the economy and lowering the GDP. After the financial crisis exploded and spread throughout the world, some measures, for example, lowering the interest rate and maintaining a low level of reserve requirements, were implemented by central banks with the aim to stabilize market prices and finance liquidity to support aggregate demand. However, in reality, the central bank interest rate is very low in the UK, the European system and the US, which are approaching zero, so it is difficult for central banks to maintain financial conditions and support a further stimulation through interest rate instruments (Benford et al, 2009). Meanwhile, commercial banks have reduced the aggregate of bank loans to maintain sufficient reserves and impede the value of assets, because there is not enough money to expand their investments to profit in a high-risk investment environment. Therefore, the Bank of England, the European Central Bank and the US Federal Reserve generate a series of non-standard monetary policies called unconventional monetary policies to avoid the threat of a liquidity trap (Loisel and Mesonnier, 2009). This essay will discuss what unconventional monetary policies implemented by the Bank of England, European...... middle of paper......8, 2009.5. Curdia. V and M. Woodford, 2010. Conventional and unconventional monetary policy. Review of the Federal Reserve Bank of St. Louis, 92 (4), pp.229-264.6. European Central Bank, 2010. The ECB's response to the financial crisis. ECB Monthly Bulletin.7. Fleming, Michael J, W. B, Hrung and F. M, Keane, 2010. Repo Market Effects of the TSLF. American Economic Review, 100 (2), pp.591-596.8. Joyce. Michael. A. S, A. Lasaosa, I. Stevens and M. Tong, 2011. The impact of quantitative easing on the financial market in the UK. International Journal of Central Banking, 7(3), pp.113-161.9. Loisel. O and J. S, Mesonnier, 2009. Unconventional monetary policy measures in response to the crisis. Bank of France, NO.1, pp. 1-13.10. Meier. A, 2009. Panacea, curse or non-event? Unconventional monetary policy in the United Kingdom. International Monetary Fund .