Navigating Economic Turbulence

This chapter examines the unique challenges posed by a recession driven by targeted policy actions rather than typical economic cycles, particularly in light of the pandemic. The discussion highlights the unprecedented nature of the economic slowdown and contrasts the current crisis with previous financial downturns, focusing on the evolving role of central banks and the necessity for new policy tools. Additionally, it underscores the significant fiscal measures implemented by governments to support individuals and small businesses while maintaining a delicate balance between central bank independence and fiscal responsibility.