Research needed into central banks’ pandemic response

Buckle, speaking to the New Zealand Economists Association annual conference, said the pandemic posed unprecedented challenges for governments and central banks, and assessments are needed for accountability and insights to guide future policy

A review of the Australian Government’s policy responses, suggests the defining characteristic of the pandemic is “huge and ongoing uncertainty”.

There was uncertainty over the epidemiological features of the virus, its impact on peoples’ health, how society would respond to government health mandates, the frequency and duration of those mandates, how the financial system would react, and the effectiveness of unique fiscal measures introduced to buttress economies. “Initial forecasts for economies were dire,” Buckle said.

In Australia and around the world, central banks have been widely criticised for their responses to the pandemic and while there have been some attempts to evaluate their decisions, they have been partial only, he said.