If you think about central bankers, I dare say creativity won’t exactly be the first quality that springs to mind. But coining new acronyms does appear to be one discipline that really gets central bankers’ creative juices flowing. We also came up with CAMELS, which stands for capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk.
In 2020, despite a short spell of recovery during the summer, world GDP declined by about 3.5 per cent, the largest contraction since WWII. Economic losses in the euro area and the UK have been particularly severe. Fiscal and monetary authorities responded swiftly with massive expansionary interventions.