Over the coming years, central banks will aim to unwind the massive support they have provided during the pandemic. It won’t be easy though, as financial markets and governments are now heavily reliant on this aid. Although there will be a degree of normalization, many developed market central banks will maintain their large balance sheets and ultra-low policy rates for years to come. Meanwhile, if a new crisis were to emerge, we should expect even more money to be thrown at it.
Watch Robeco’s Global Macro Strategist Martin van Vliet discuss this scenario with Professor of International Economics Beatrice Weder di Mauro.
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