An Overview of Central Banks’ Answers to Economic Stimulus Following Covid-19

Political Studies Forum

Alexandru Duță¹ 

[1] West University of Timișoara;

关键词: monetary policy;    financial instability;    fiat money;    inflation;    economic stimulus;    covid-19;   

DOI  :  

来源: DOAJ

【 摘 要 】

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.

【 授权许可】

Unknown