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In a Global Pandemic, Modeling the Central Bank Functions

¹ Institute for Policy Models, Seattle, WA, USA

Modern Economy·Volume 12 (2021)·Pages 623–658·Published 10 March 2021·DOI10.4236/me.2021.123032

Abstract

In 2020, the global corona-virus pandemic created economic crises and market panics in most nations of the world. The central bank, in each nation, took actions to calm financial markets and avoid economic depression. This expansion of central bank functions had begun in the previous 2008 global financial crisis and was increased in 2020. We analyze this 2020 pandemic financial crisis to understand the new spectrum of central bank functions, and we apply system models of monetary policy and fiscal policy to identify operations of central banks .

KeywordsFinancial SystemsCentral BanksFinancial CrisesEconomic Recessions

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In a Global Pandemic, Modeling the Central Bank Functions

Abstract

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