Monetary policy reaction to Covid 19 in CEE Economies: Lessons from the use of conventional and unconventional instruments
How have central banks in Central and Eastern European emerging markets responded to the Corona crisis? The study subjects the countries to a systematic comparison and examines the use of conventional and unconventional instruments.
This study examines the monetary policy of the central banks of Poland, Hungary, Romania, the Czech Republic and Russia.
It becomes clear that the majority of the CEE countries examined initially tried to deal with the crisis using conventional monetary policy methods. Some countries went beyond this and also applied unconventional methods. In contrast to the developed industrialised countries, these instruments were not used as a substitute, but in parallel to conventional monetary policy. Moreover, the use of unconventional methods was often accompanied by expansionary fiscal spending programmes.
