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Olli Rehn: Economic Effects of the Corona Crisis and Measures by the Central Banks (BIS, 10 min read) The ECB’s timely and targeted stimulus can help the European economy withstand the COVID-19 crisis, according to the Bank of Finland governor, but a coordinated European fiscal response is also vital for small open economies like Finland.
The Fed Has Announced Unlimited QE to Include Many Asset Classes (Credit Writedowns, 2 min read) The Fed is now “buyer of last resort” for all investment grade assets and with the Treasury, via the ESF, backstopping this lending the government and central bank are now acting together.
Did the Fed’s Term Auction Facility Work? (Liberty Street Economics, 3 min read) An old blog but nevertheless relevant as the Fed reactivates much of its crisis toolkit, but not yet the TAF. This facility was found to work as intended with the announcement of term loans triggering a decline in banks’ liquidity premium.