(IV) The policy mix This brings me to a central question for policymakers at the current juncture: what is the most appropriate policy mix in the face of these old and new shocks hitting our economies? My main message is twofold: First, it is fiscal policy that has to be in the lead in mitigating the macro-economic consequences of this prolonged public health emergency.
Efforts that monetary policy can support by keeping financing costs low for all borrowers Second, the macro-economic implications of the unprecedented corona shock and continuing elevated levels of uncertainty require coordination of efforts from all policy areas. Most importantly in this context, between monetary and fiscal authorities.