Markets have a thin safety net amid chaos

CENTRAL banks have been a powerful tool to steady the global economy in crises past. Their ability – and willingness – to do so now is constrained. The terrain is tougher and the costs of a rescue are higher.

The price Russia pays for its invasion of Ukraine, not to mention the fate of the global pandemic recovery, depends to a large degree on whether Western monetary authorities deploy their muscle and what they are prepared to sacrifice along the way.