In the aftermath of the 2007-09 financial crisis, central banks around the world have sought to stimulate the economy through new policies specifically designed to revamp the credit and housing markets. These include the U.S. Federal Reserve QE1 and QE3, the European Central Bank (ECB) Targeted Longer-Term Refinancing Operations, and the Bank of England Funding for Lending Scheme, among others. A main goal of these unconventional policies was to make it cheaper for lenders to access funds and, in turn, “enhance the functioning of the monetary policy transmission mechanism by supporting lending to the real economy” ... (full story)