Exceptionally large monetary and fiscal policy measures have been implemented globally to counteract the adverse economic consequences of the covid-19 crisis. The analysis first provides an overview of some of the measures taken to support liquidity and lending in the US, Germany, Sweden and...

This working paper gives an overview of the current debate on monetary policy reactions to asset prices, focusing on the developments on equity markets in the United States. It first describes the main causes and consequences of these developments and then surveys the pros and cons of a monetary...