THE EVOLUTION OF GLOBAL MONETARY POLICY INSTRUMENTS IN 2020–2025: LESSONS FROM THE US, EU, AND CHINA
Abstract
The period 2020–2025 reshaped global monetary policy more dramatically than any time since the global financial crisis. The COVID-19 shock, the post-pandemic inflation surge, Russia’s invasion of Ukraine, energy and food price spikes, and subsequent growth slowdowns forced central banks to redesign and then rapidly re-calibrate their toolkits. Traditional policy rate changes were combined with large-scale asset purchases, targeted lending schemes, and new standing facilities.
This thesis briefly analyses how the instruments of monetary policy evolved in three major jurisdictions – the United States (Federal Reserve), the euro area (European Central Bank, ECB) and China (People’s Bank of China, PBoC) – and draws lessons for future policy design and for smaller, open economies.
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