Virus Outbreak: Pandemic rivals climate change: report

LOOSE POLICIES: Measures by major central banks, such as quantitative easing, have overwhelmed small and emerging economies with large capital inflows, the report said

Taipei Times
Date: Dec 28, 2020
By: Chen Cheng-hui / Staff reporter

A person stands behind the central bank logo in Taipei on Feb. 26, 2018.
Photo: Tyrone Siu, Reuters

If the economic effects of the COVID-19 pandemic are not addressed, they could pose an even greater challenge than those of climate change, the central bank said in a report on Friday.

Calling the pandemic a natural disaster, the report said that while climate change affects economic and financial systems gradually, predictably and over a long term, the pandemic’s effects are immediate, sudden and highly uncertain.

Major economies have adopted large-scale relief and stimulus packages to cope with the fallout of the pandemic, while major central banks have adopted emergency measures such as loosening monetary policies, the report said.

The US Federal Reserve, European Central Bank, Bank of Japan and other major central banks have accelerated their pace of purchasing bonds on a large scale, even faster than in the 2008 global financial crisis, which has led their asset scale to reach record highs, the report said.    [FULL  STORY]

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