Help me comment my classmate post Expansionary monetary policy works by increasing the money in the economy faster than it usually would. In return, the interest rate is lowered for a while. If the interest rates are already near zero, expansionary monetary policy can reduce it any further, making it useless. The Federal Reserve has used quantitative easing, forward guidance, negative interest rates, and asset purchase programs. The method that the Great Reserve used was quantitative easing with a combo of forward communication. The response that was used was the right move because it limited the possibility of further disaster