The Indian Economist By Parush Arora Crisis drives innovation and creativity. The Great Depression, unarguably one of the biggest crises in economic history, lead to the emergence of Keynes and his conventional monetary tools. Post recession, there was an increase in money supply and decrease in interest rates so as to increase lending, spending and investment. Quantitative easing: Healing the unconventional way The housing bubble in the US burst in 2008, freezing the credit market worldwide. This lead to major changes in the developed economies. The banks were reluctant to spend and limited their lending in wake of the poor performance of the economy. After 2008, the conventional tools turned out to be ineffective owing to the nature of the crisis. This lead to the emergence of unconventional tools like ‘quantitative easing’. In quantitative easing, the central bank purchases securities and bonds from the public in exchange of newly generated currency. This...