In the recent years, world economy has witnessed the influence of unconventional monetary policy of the U.S.A. This policy stance is known as
Quantitative easing
Monetary policy is called unconventional when the usual instrument, the short-term policy interest rate, has been pushed near zero and can no longer be cut, so the central bank must act through other means.
The stance referred to is quantitative easing. Under quantitative easing the central bank creates reserves and uses them to buy large quantities of longer-term assets such as government bonds and mortgage-backed securities. This injects liquidity directly into the financial system, pushes down long-term yields and encourages lending and risk-taking. The programmes run by the United States Federal Reserve after the global financial crisis were on a scale large enough to affect capital flows, exchange rates and asset prices across the world economy, which is the influence the question refers to.
The bank rate and reserve requirements are conventional instruments that central banks have long used to influence the cost and availability of credit. The Taylor rule is not a policy instrument at all but a formula suggesting how the policy interest rate should respond to inflation and the output gap. Only quantitative easing is the unconventional stance described.
Hence the policy stance is known as quantitative easing.
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