Central banks are all-in on extreme monetary policies in the face of the severe economic fallout from the Covid-19 pandemic.

Learning from the global financial crisis (GFC), policymakers have reacted very quickly this time around. They have basically reactivated all of the previous emergency measures, and then some.

In addition to historically low interest rates, the US Federal Reserve has committed to an open-ended quantitative easing (QE) programme — buying mostly Treasuries and mortgage-backed securities but also, for the first time, corporate bonds of all grades from both the primary and secondary markets as well as through exchange-traded funds, among others.

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