The pandemic has now jolted governments – out of necessity – into policies that better reflect the needs of macroeconomic stabilisation. As a result, we are currently witnessing a real-world test case of whether combined fiscal and monetary easing can still lift inflation.
However, once the risks in the financial sector materialised and the government had to step in, Irelands fiscal position deteriorated very quickly. 2  BIS central bankers’ speeches  3. The way forward  To overcome the current crisis, and to prevent future crises, we have to address these problems I have just described.