An Overview of Central Banks’ Answers to Economic Stimulus Following Covid-19
In this paper we discuss the implications of various economic stimulus mechanisms implemented by the United States and EU central banks to combat the economic downturn caused by the Covid-19 pandemic. The huge increase in both the Federal Reserve’s and European Central Bank’s balance sheets using fi...
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| Format: | Article |
| Language: | English |
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Editura Universitatii de Vest
2021-07-01
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| Series: | Political Studies Forum |
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| Online Access: | https://pfc.uvt.ro/wp-content/uploads/2014/07/Articol-Duta.pdf |
| Summary: | In this paper we discuss the implications of various economic stimulus mechanisms implemented by the United States and EU central banks to combat the economic downturn caused by the Covid-19 pandemic. The huge increase in both the Federal Reserve’s and European Central Bank’s balance sheets using financial tools has led to a distortion of stock markets and government bonds. In turn, this has led to a monumental increase in MZM (deprecated M3) that may prove to be unsustainable. As such, the central banks’ governance bodies have taken steps to provide alternatives to fiat money as a means of last resort. |
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| ISSN: | 2067-1318 2360-1795 |