Importantly, what we end up doing will depend on what other policymakers do. In particular, fiscal policy, a key transmission channel for monetary easing during the pandemic, should stop feeding aggregate demand. It should start doing so now, with a net reduction of structural deficits, allowing for targeted measures to support the most vulnerable segments of our economies.
I know that this is easier said than done. After a long period of cheap money, people expect the government to protect them from external shocks. But all else being equal, loose fiscal policies ultimately provoke a stronger monetary policy response.