direct: Central banks and governments around the world have revealed incentives estimated at about $ 15 trillion to support their economies from the repercussions of the “Covid 19” epidemic.
A report published by Reuters on Tuesday indicated that this total is equivalent to about 17 percent of the value of global GDP of $ 87 trillion last year.
The $ 15 trillion includes incentives announced by the G10 economies.G10“In addition to China, with the fact that it is difficult to track the total incentives.
According to the report, central banks also plan to buy more bonds, and some say there is no cap on purchases, which could inflate $ 15 trillion from now to the end of 2020.
Since the beginning of the epidemic, and until now, central banks around the world have cut interest rates to historically low levels near zero, but with limited space in front of further cuts, these banks have moved to the policy of printing money, which was first seen in the financial crisis in 2009.
The size of this stimulus is difficult to assess, with the fact that the pace of asset purchases that central banks use to pump money into the system changes over time.
Morgan Stanley economists expect that the group’s economiesG4“The United States, the Eurozone, the United Kingdom, and Japan, as well as China, will increase their balance sheets by about $ 13 trillion by the end of 2021, with the general budget of the European Federal Reserve and Central Bank exceeding 50 percent of gross domestic product.
In order to reach a number on the announced incentives, the agency only tracked asset purchases that were already made.
The agency notes that, based on the foregoing, the major central banks have expanded their balance sheet by an estimated $ 4 trillion, led by more than $ 2.4 trillion pumped into the federal period between the end of February and until April 22 last.