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Central banks: Operating in the post-Covid policy environment

Central banks: Operating in the post-Covid policy environment

In the aftermath of the Covid pandemic’s initial onslaught, central bankers proved their policy toolkit had not – as feared – been exhausted by the great financial crisis of 2008-09 and its aftermath. Furthermore, the experience of combating the GFC taught them to deploy that tool kit quickly and decisively. But, especially in the case of the US and Europe, those central bankers were slow to dial back their support as the global economy rebounded from the initial shock of the pandemic. Many now stand accused of stoking inflationary pressures. With inflation hitting multi-year highs in the US and Europe and fiscal discipline in many countries now honored mainly in the breach, central bankers face a new set of challenges.

The predictive power of EPFR – Webinar

The predictive power of EPFR – Webinar

Since the start of its ETF purchasing program in 4Q10, the combined value of the Bank Of Japan’s (BOJ) domestic ETF holdings has ballooned to over $450 billion. It owns over 5% of the total market capitalization of the TOPIX index and, by some estimates, has acquired 70% of the total ETFs eligible under the terms of its current program.

EPFR’s 2021 Q1 wrap – Reflation, inflation and volatility – Webinar

EPFR’s 2021 Q1 wrap – Reflation, inflation and volatility – Webinar

The first quarter of 2021 saw the global reflation vs. inflation story develop. February brought with it a record number of flows into equity funds and as we move through March, our research team continues to compile EPFR-tracked fund flows and allocations data to ascertain whether global reflation will trigger higher-than-expected inflation.