This complex relationship between output and employment underpins why many central banks are now adjusting their policy decision-making to remain ‘lower for longer’.31 Central bankers are increasingly wanting to stare employment in the whites of the eye before making their decision.
The investment fund sector globally saw large redemptions in March, and the subsequent “dash for cash” - especially dollars - put signi cant pressure on other markets, markets that had previously been seen as safe and liquid. This tightening of global nancial conditions was partly mitigated by central bank interventions.