Central Banks (CBs) are by nature more flexible than governments. Thus, they have been the most proactive in this crisis, reintroducing large-scale asset-purchase programmes financed by money creation (QE policies). With this pandemic, a spectacular change in economic policy has taken place in just a few months: fiscal and monetary policies have become intertwined, and this is probably not reversible. While governments have become the buyers of last resort, CBs are playing their role as lenders of last resort. How far can they go? 

Listen to the answer in this new Outerblue Talks Research episode broadcasted by Didier Borowski, Head of Global Views.

Authors

RC - Author - BOROWSKI Didier
Didier BOROWSKI
Head of Macro Policy Research, Amundi Investment Institute