, Columnists
Central Banks Can Do More to Calm Markets
Their investments should support their policy goals.
Don’t make it worse.
Photographer: Kazuhiro Nogi/AFP/Getty ImagesThis article is for subscribers only.
Central banks around the world are doing everything they can to soften the financial and economic blow of lockdowns aimed at containing the coronavirus. But as owners of more than $13 trillion in foreign exchange reserves, they’re also major investors whose actions can either support or undermine their policy efforts.
To achieve the right outcome, they’ll need to make sure their investment actions calm rather than inflame markets further.