Obviously, wars create unprecedented challenges for economies and policymakers. 2/7  BIS - Central bankers' speeches  However, history provides some good examples of effective and rapid recoveries in the aftermath of wars.
This concerns in particular the fragmentation in some markets and diverse and weak loan growth across participating countries. While monetary policy in this situation has alleviated the severity of the downturn, let’s not forget Wicksell’s insights. Monetary policy cannot alter the level and distribution of income in a durable way.