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16/04/2020

Monetary policy (non-conventional), key to mitigating the economic effects of the COVID-19.- David Cano Martínez

The economic recession caused by the health measures implemented to prevent the spread of the coronavirus (flattening the curve) will possibly be more intense than the two other major ones suffered in the last century: the Great Global Financial Crisis (2008-2012) and the Great Depression (1929-1934). But it is also expected to be much shorter (two quarters of GDP transfer). The key to preventing it from being prolonged will be to avoid the ‘structural damage’ of the economic crisis. This means, to a large extent, minimizing the default of companies and families. To this end, monetary policy action, in particular its unconventional aspect will be essential. The intention of this article is to set out the measures taken by the ECB.

David Cano Martínez. Associate of Analistas Financieros Internacionales (AFI). General Director of AFI Inversiones Globales, SGIIC.

Note: The full document is only available in Spanish.