Question

what has the European Central Bank been doing since March 2020 to deal with the Covid 19 crises? Do you agree or disagree with their actions and whyPlease put in your paper – what has the European Central Bank been doing since March 2020 to deal with the Covid 19 crises? Do you agree or disagree with their actions and why

Answer 1

European Central Bank has been adopting the quantitative easing policy since coronavirus crisis has unfolded because European Central Bank has always tried to stimulate the demand to the economy after the coronavirus pandemic has unfolded because it wants to stable the economy which has started to discount prediction of an impending recession and it has tried to provide the adequate stimulus in form of almost zero interest rates and cutting down on the Reserve requirement in order to support the bank so that they can provide higher loans and stimulate the demand into the economy and stabilize the economy.

European Central Bank has been following up with the lines of the Federal Reserve which has also cut the interest rates and adopted the quantitative easing policy as the global Central banks has been trying to deal with this pandemic through providing adequate stimulation to the demand by cutting the interest rates and increasing the liquidity into the economy by stimulation of the demand and I think this has been the appropriate strategy.

I do agree with the actions of the European Central Bank because stimulation of the demand into the economy is one of the most important thing which has to be done at the time of the current crisis because if it is not controlled, it can lead to an impending recession and there has to be adequate support from Central banks in order to avoid and cut down the probability of recession by providing quantitative support and it is done through quantitative easing and I completely agree with the steps which has been taken by the European Central Bank