YCC – a response to the corona curveball?
All eyes have been on the US Fed recently as it debates measures to stimulate the country’s corona-stricken economy. Many of us are already familiar with ‘QE’ – the mass asset purchases made by central banks, including the Fed, in the wake of the financial crisis. However, the name of a lesser-known monetary policy tool has surfaced in media reports lately: Yield Curve Control. In the new issue of Infocus, EFG Chief Economist Stefan Gerlach turns the spotlight on this concept and explores how it works.
