The long road to monetary policy normalisation
The monetary policy responses to the economic and health crisis due to covid-19 were to lower interest rates, the historical amounts of liquidity injected by central banks, and loans to the financial sector.
The implemented monetary policy, known as "quantitative easing", had the objective of halting the fall of the stock market, stimulating consumption, investment and employment which, in turn, would favor economic recovery.
The upcoming normalization of monetary policy will be a challenge for central banks. The experience gained with the 2008 crisis shows that normalization is a medium and long-term policy and there is uncertainty about what, how and when it will be.