Central Banks: Money, Policies, and Impact

Abstract

The footprints of the central banks have grown considerably over the last fifteen years. This growth is the result of unconventional policies implemented in response to the great financial crisis of 2008 and its lingering aftershocks, as well as to the emergence of new crises, such as the Covid-19 pandemic. These accommodative and expansive new policies have, in many countries, been accompanied by a growth in government debt, with the central banks purchasing large quantities of government bonds using freshly created money. While some Show more