Monetary policy and government debt management during the coronavirus pandemic

Publication date: 16 Mar 2021 | Publication type: National Institute Economic Review | External Author(s): Alen, W A | JEL Classification: E52; E58; E63 | Journal: National Institute Economic Review Issue 255 | Publisher: Cambridge University Press

This paper describes how the large budget deficits of 2020 in the United States and the United Kingdom were financed, how central banks are in practice managed not just short-term interest rates but also yields on government bonds, and how their ability to resist a post-coronavirus surge in inflation has been compromised.

Keyword tags: 
central bank operations
Government bonds