firms, eased monetary policy to support the flow of credit and tackle financialmarketdisruptions, and adopted macroprudential measures that cushioned the impact of the crisis on both banks and borrowers. The objective was twofold: supporting demand; and protecting supply, by avoiding a string of potentially disruptive bankruptcies of individuals, corporations, and banks.
Monetary Policy Rate Cuts and Unconventional Responses
Central banks across Europe have embarked on substantial monetary easing. Policy rates were cut significantly in many economies (e
When recent turmoil in financialmarketsdisrupted economies across the globe, the countries of sub-Saharan Africa (SSA) were adversely affected through trade and the decline in commodity prices induced by the crises. But there was little impact on their financial markets or on the financing conditions facing them, with the exception of South Africa (see Box 2.1 ). These countries were in effect largely immune to financial contagion because of the low degree of international integration and underdevelopment of their financial markets. These same factors
The COVID-19 pandemic has caused dramatic loss of human life and major damage to the European economy, but thanks to an exceptionally strong policy response, potentially devastating outcomes have been avoided.