Conclusions

Abstract

The world’s major central banks were the main actors in the crises of the past two decades.

In the immediate aftermath of the global financial crisis, and in the case of the ECB, the European debt crisis, the central banks had to prevent dislocated financial markets from tipping their economies into a multiyear depression. While the central banks succeeded, political circumstances made it difficult to hand off the policy baton to other government agencies. As such, both the Fed and the ECB had little choice but to take on the bulk of the responsibility for bringing about better macroeconomic outcomes.

Mohamed El-Erian, Bloomberg 12.6.2018 (See also El-Erian 2017)