The Monetary Policy Response to Contain the Economic Implications of the Pandemic (Covid-19)

Abstract

The study attempted to shed light on how monetary policy responded in the face of the economic repercussions of the pandemic (Covid 19), as central banks had to intervene and take the necessary measures to reduce the impact on the affected people from the pandemic from individuals and institutions. The study concluded that monetary policy was one of the most important policies that responded quickly to the repercussions of the pandemic through measures centered on the work of central banks to support demand and confidence by facilitating financial conditions, ensuring the flow of credit to the Real sector, and enhancing liquidity in the domestic and international financial markets. So interest rates were lowered in many countries, the main central banks activated currency exchange lines, and established new lines to relieve pressure on financial markets. The regulatory and supervisory authorities also responded with the aim of maintaining financial stability and the integrity of the banking system and maintaining the continuity of economic activity