Concentrated firepower: central banks must expand their arsenal

The global financial crisis expanded the toolbox of central banks. What’s more, it changed the mindset. Central banks became more ready to experiment. What do we need to do? Can we design something to meet a specific threat?

The coronavirus hit when the world already faced a major credit crunch in corporate bond markets. Hence the single new policy that stands out as central banks tackle the financial disruptions of the Covid-19 pandemic is the Federal Reserve’s decision (announced on March 23)