May 12, 2020
As the coronavirus (COVID-19) delivered a seismic shock to capital markets, with a tremendous impact on daily lives, market participants wonder how effective policy steps have been, and what lies ahead. In this global outlook, “Traveling new economic roads: How the pandemic may reshape monetary policy frameworks,” the Macquarie Multi-Asset team discusses aspects such as:
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- Global policy makers still are serving as “guardians of the economy” and have managed to dampen uncertainty.
- Their policy action reduced the likelihood of another imminent severe market setback, while the massive economic impact remains.
- Going forward, synchronized fiscal and monetary policy looks increasingly likely and could lead to another round of asset price inflation.