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Economica

Vol. 16 No. 3-4 (2025)
Articles

Radical Times Require Radical Measures – the Fed, the ECB and the BoE monetary response to the pandemic

Published:
2025-12-31
DOI Linkhttps://doi.org/10.47282/economica/2025/16/3-4/15228
Author
Bianka Kész
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pdf (Hungarian)
Keywords
non-conventional monetary tools coronavirus crisis asset purchase central bank balance sheet crisis management
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Copyright (c) 2025 Bianka Kész

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How To Cite
Selected Style: APA
Kész, B. (2025). Radical Times Require Radical Measures – the Fed, the ECB and the BoE monetary response to the pandemic. Economica, 16(3-4), 107-124. https://doi.org/10.47282/economica/2025/16/3-4/15228
Abstract

This journal describes the non-conventional measures used by the Federal Reserve, the European 
Central Bank and the Bank of England during the coronavirus crisis. The pandemic followed a 
period of historically low interest rates, rendering the main monetary policy tools of central banks 
largely ineffective in further stimulating the economy. Consequently, central banks introduced so
called non-conventional measures. The primary aim of this study is to present the theoretical 
functioning of elements within the central banks’ toolkit, particularly focusing on non
conventional measures, as well as their intended economic objectives and associated risks and 
challenges. The article reviews crisis management measures implemented by central banks, such 
as asset purchases and liquidity-providing programs, aimed at mitigating the negative economic 
impacts of the coronavirus pandemic and preserving economic stability in an exceptionally 
challenging environment. Through a detailed examination of these measures, readers gain 
insight into why central banks resorted to these tools and how they became essential instruments 
during the crisis. 

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