Review

The role of monetary policies in exiting of 2008 financial crisis in Australia and Switzerland

¹Roya Seifipour and ²Ali Mohammadizadeh

¹Assistant Professor Department of Economics and Accounting, Islamic Azad University, Central Tehran Branch
²Master of Economic Sciences, Islamic Azad University, Central Tehran Branch’

*Corresponding Author's E-mail: hadi9131@yahoo.com

Accepted January 06, 2014

Abstract

During a short time, with 2008 financial crisis that began in America’s housing market, the gross domestic product of countries decreased and their unemployment rate increased. In order to exit from the crisis, various countries, including Australia and Switzerland adopted various policies that expansionary monetary policies means increasing of monetary base and reducing of interest rates, is one of them. The purpose of this research is studying on effectiveness of imposed monetary policies on gross domestic product of Australia and Switzerland during financial crisis of 2008. So is used of gross domestic product data, monetary base, effective exchange rate, interest rate and dummy variable in vector error correction model. Results indicate significant and negative impact of financial crisis of 2008 on both gross domestic product and incompetent of imposed monetary policies in these countries.
JEL Code: E40, E20, G01

Keywords: Monetary policies, Financial crisis, Systematic risk, Vector error, Correction model.