It May Be Harder for Central Banks to Manage Recoveries than Economic Downturns?

Recent statements from the U.S. Federal Reserve may seem puzzling to some and downright annoying to others. What comes through rather clearly, however, is that the Fed is not quite sure how to handle the economic recovery. And it is not alone. In Europe, there is an emerging division between those who think that the liquidity support offered by the European Central Bank (ECB) has run its course and those who believe more stimulus is needed.

Author: Danny Leipziger

Publication Type: Economic Viewpoint

Publication Year: 2021

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