NDTV OpEd
The global economy has been facing a number of challenges in recent years, from the financial crisis of 2008 to the current pandemic. In response, central banks around the world have taken action to stabilize the economy and protect it from further damage.
Central banks are responsible for managing a country’s money supply and interest rates. They use a variety of tools to influence the economy, such as setting interest rates, buying and selling government bonds, and providing liquidity to banks.
In times of economic crisis, central banks can take action to help stabilize the economy. This includes lowering interest rates to encourage borrowing and investment, and providing liquidity to banks to ensure they have enough money to lend. Central banks can also buy government bonds to help finance government spending and stimulate the economy.
Central banks have taken a number of steps to stabilize the economy during the pandemic. The US Federal Reserve, for example, has cut interest rates to near zero and launched a number of programs to provide liquidity to banks and businesses. The Bank of England has also cut interest rates and launched a number of programs to support businesses and households.
Central banks have also taken action to support the financial markets. The US Federal Reserve, for example, has launched a number of programs to buy corporate bonds and other assets to provide liquidity and stabilize prices.
Central banks have taken a number of steps to stabilize the economy during the pandemic. These measures have helped to reduce the economic impact of the crisis and protect the financial system from further damage. However, it is important to remember that these measures are only temporary and that more needs to be done to ensure a strong and sustainable recovery.