01.10.2020  The role of the European Central Bank’s monetary policy in the COVID-19 crisis Deusto Business Alumni Meeting Pablo Hernández de Cos Governor  Good morning, ladies and gentlemen. It is a pleasure for me to be able to participate in this meeting organised by Deusto Business Alumni. I would like to take this opportunity to share firstly with you some thoughts on how money monetary policy has helped stave off some of the more serious consequences, at least from the economic standpoint, of the COVID-19 crisis. In the second part of my speech, I would also like to reflect on certain challenges that the gradual reduction in the so-called “natural interest rate” poses for monetary policy conduct in advanced economies. This is an issue which will be particularly significant in the context of the monetary policy review initiated at the European Central Bank (ECB). The monetary policy reaction during the crisis The outbreak of COVID-19 in Europe in late February and early March was a shock of great magnitude which triggered an unprecedented economic impact due to the reduction in both the supply and demand for goods and services. The serious, temporary and global nature of the shock initially required powerful economic policy actions. The objective of this “shock therapy” was to avoid a temporary shock from generating effects which persist over time.
Andres Lipstok: Estonia’s economic environment and central bank activities Speech by Mr Andres Lipstok, Governor of the Bank of Estonia (Eesti Pank), at the the presentation of Bank of Estonia’s 2008 Annual Report to the Riigikogu, Tallinn, 11 June 2009. *  *  *  Dear Riigikogu, Thank you for the possibility to present you Eesti Pank's 2008 Annual Report. I am going to start with a brief retrospect of the Estonian economic environment and then address issues concerning the activities of Eesti Pank. The Estonian economic environment in 2008 and 2009 2008 was an exceptional year in the world economy. Developed economies have not faced the risk that banking and financial markets could collapse and the global financial system stop functioning since the beginning 1930s. But the financial crisis, which was caused by previous years' incorrect decisions, made this a very likely scenario. In the final months of the past year major banks were too afraid to lend money to each other and trading with privatesector bonds nearly ceased. Loss of confidence in financial markets, loan losses amounting to 3-4 billion dollars and a sharp decline in crediting the private sector had an immediate impact on global trade, investment and economic growth. Global trade contracted 17% in the fourth quarter of 2008 and at the beginning of this year. Major central banks and governments have taken unprecedented steps to alleviate the economic situation.