Projects: CFR2-KL

We investigate response measures that could be deployed by central banks and other financial institutions in the context of the Covid-19 crisis in a way that contributes to sustainability. Originally conceived to develop a framework for policy responses for the next financial crisis, the project concept was updated to consider policy options for both the stabilisation and the recovery phases of the current crisis. We review and assess existing and novel proposals and present a menu of post-crisis management tools for central bankers, financial regulators, and governments, with an evaluation of their sustainability-related risks and benefits, taking particular note of the environmental and social equity dimensions. The project will consider the suitability of different response options in Europe, Asia, and North America based on available knowledge about tools used in prior crises and in this crisis so far. Policy options for different areas will be discussed in a series of closed and public webinars, and policy recommendations will be published in a policy brief series that will form the basis of an overall summary report.