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4.11.2020 25

Addressing the legacy of the crisis in the EM: the right policy mix in an uneven recovery

Published November 4, 2020

5 to 10 minutes

5 to 10 minutes


The duration of the epidemic will ultimately determine the shape of recovery. An uneven recovery and subdued inflation (barring any persistent supply shock) will call for a prolonged accommodative policy mix, in either monetary or fiscal policy. The merger of the two has to be careful monitored in emerging markets.


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