For instance, the outsized fiscal stimulus implemented in the United States in response to the pandemic boosted the demand for durable goods  (Chart 10) but led to a negative supply shock in other countries. [16] In the euro area, this supply shock contributed to pushing up inflation and hit the economy at an early stage of its recovery.
As recently noted by ECB’s President, Mario Draghi, “[i]t was only after the crisis that there was widespread recognition of the importance of the macro dimension of financial stability.”1 Central Banks play a crucial role in ensuring economic and financial stability.