2 Mar 2022

OFI AM - PANORAMA March 2022

In reaction to the Covid-19 crisis, central banks have ventured into “civilian” life. What they have done has been both helpful and popular. But now that global economic activity has surpassed its 2019 level and inflation is at a 40-year high, monetary policies must move back to normal. But what about this war in Europe? The post-Covid world is more heavily indebted, more dangerous, more socially fragmented and confronted more urgently with climate change. Can the world do without this “societal role” being played by the central banks?