The Missing Monetary-Policy Tool
Central banks should prepare – both legally and operationally – to carry out direct transfers to households when conventional monetary policy fails. Recent research shows that stimulus payments would increase consumption even when interest rates are close to zero.
https://prosyn.org/EXQF80e
GENEVA/LONDON – Central banks around the world responded to the inflationary period following COVID-19 by raising interest rates. Now that inflation seems to be largely under control, monetary policymakers must begin preparing for the next crisis by expanding their toolkit.