For European economies, we are likely moving towards less trade with non-democratic or geopolitically more risky countries and a goal for greater independence in the production of essential goods, such as pharmaceuticals, military equipment, and high-technology goods. At the same time, we should avoid protectionism, aiming for an “open strategic autonomy”.
Since the outbreak of the Lehman crisis, major central banks around the globe have introduced unconventional monetary policy measures, including asset purchases, amid the constraints of a zero lower bound for nominal interest rates. The Bank of Japan has also implemented unconventional monetary policy several times, since more than a decade ago, and has successfully accumulated ample experience.