As crisis turns to recovery, governments must ease the burden on central banks
capitaleconomics.substack.com
By Neil Shearing, Group Chief Economist It is now accepted wisdom that in times of crisis fiscal policy should work hand-in-glove with monetary policy to deliver support to the economy. In the depths of the COVID crisis this meant huge fiscal relaxations in advanced economies being effectively financed by asset purchases by central banks. This cushioned the collapse in activity and paved the way for the strong recoveries that are now underway across the developed world.
As crisis turns to recovery, governments must ease the burden on central banks
As crisis turns to recovery, governments must…
As crisis turns to recovery, governments must ease the burden on central banks
By Neil Shearing, Group Chief Economist It is now accepted wisdom that in times of crisis fiscal policy should work hand-in-glove with monetary policy to deliver support to the economy. In the depths of the COVID crisis this meant huge fiscal relaxations in advanced economies being effectively financed by asset purchases by central banks. This cushioned the collapse in activity and paved the way for the strong recoveries that are now underway across the developed world.