Both need to combine in creative ways so that they’re complementary and not counter-productive As lockdowns around the world continue, week after week, the economic die is being cast.
The global economy is hurtling towards its deepest recession since the Great Depression. This is putting relentless pressure on fiscal and monetary policymakers.
Developed economies have thrown the kitchen sink at it. At 10% of gross domestic product (GDP), the US fiscal stimulus is its highest in recorded history.
Credit guarantees in Europe range from 15% to 30% of GDP. The US Fed has gone from being the lender of last resort to banks to the lender of first resort to the broader economy.