Current Economic Crisis and Monetary Policy Responses Impact of COVID-19 and Policy Responses to Date Let me start by looking back at the impact that COVID-19 has had on the economic and financial sides and at the policy responses to date. COVID-19 spread worldwide within a short period (Chart 1).
To assess the resilience of the system to adverse macroeconomic scenarios, stress testing analysis is carried out within a macro stress testing framework. Two major groups of macro testing exercises are conducted: one based on a multivariate regression, and the other based on a vector autoregressive (VAR) model.