Insight - Big economic stimulus works. And that’s an issue

The Federal Reserve took the lead, rapidly slashing interest rates to zero and reviving quantitative easing. These actions were followed by aggressive measures in South Korea, Australia, New Zealand, Thailand, India and Indonesia.

IF the global financial crisis taught economic policy makers anything, it was go early and go hard. The cost of hesitating proved too great.

Now the world’s most powerful central banks have expanded bond purchases to about US$17 trillion – equivalent to the gross domestic product of China and the UK combined – to keep borrowing costs low and boost Covid-ravaged economies.