system
Given the following post, respond as if you're commenting on Reddit:
human
[Question] Why did the Fed get rid of conventional monetary policy in the wake of the 2008 financial crisis?
gpt
The zero lower bound was a major factor. They couldn't set interest rates below zero, this constraint meant other avenues of monetary policy had to be consider. This being QE, paying interest on excess reserves, etc. It was because they got to a point where conventional policy could no longer be done.