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Central Bank Response to COVID-19

Author

Listed:
  • Ramos-Francia, Manuel
  • García-Verdú, Santiago

Abstract

The COVID-19 crisis has been, above all, a tragic public health crisis. It has entailed an enormous effort to respond to the demand for health services. In it, fiscal authorities have led the economic policy responses. For their part, central banks responded swiftly by easing their monetary policy stance and implementing facilities to provide liquidity and enable credit in the economy. We discuss key economic issues of the central bank response, in which the monetary authorities have had to account for the crisis’ nature. We argue that the actions taken by central banks in general avoided a further deterioration of financial and economic conditions.

Suggested Citation

  • Ramos-Francia, Manuel & García-Verdú, Santiago, 2022. "Central Bank Response to COVID-19," Latin American Journal of Central Banking (previously Monetaria), Elsevier, vol. 3(3).
    • Handle: RePEc:eee:lajcba:v:3:y:2022:i:3:s2666143822000199
    DOI: 10.1016/j.latcb.2022.100065
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    References listed on IDEAS

    as
    1. Flannery, Mark J, 1996. "Financial Crises, Payment System Problems, and Discount Window Lending," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(4), pages 804-824, November.
    2. Bindseil, Ulrich, 2014. "Monetary Policy Operations and the Financial System," OUP Catalogue, Oxford University Press, number 9780198716907.
    3. Bagehot, Walter, 1873. "Lombard Street: A Description of the Money Market," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number bagehot1873.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Central banks; Monetary policy; COVID-19;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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