BIS’s Borio urges return to fiscal-monetary separation
Action was necessary in crisis but could lead to “instability trap”, official says
Central banks and governments should try to engineer an exit from the co-ordinated policies launched to tackle Covid-19, Claudio Borio said today (September 20).
Failing to move back towards separation of fiscal and monetary policies could trigger an “instability trap”, the Bank for International Settlements official said.
Borio, who heads the BIS’s monetary and economic department, told a conference at the Bank of Latvia: “The ultimate, most damaging, hazard would be a kind of ‘instability
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