In addition, parallel to monetary easing, if the government creates real demand and wages and employment improve through the expansion of consumption and investment, this is expected to contribute to generating a virtuous cycle that eventually will lead to a gradual pick-up in inflation.
We also urge IFC and MIGA to take stock of the Covid-19 crisis and to reflect on 3additional actions and tools to respond effectively to the huge challenges faced by the private sector in developing countries.