Ryan Banerjee

4 days ago | bis.org | Ryan Banerjee |Jon Frost |Michael Chui

BIS Bulletin | No 101 | Today's two-tier monetary system performs a crucial role: providing money in an elastic way through overdrafts and lines of credit in the face of uncertainty and unforeseen shocks. During the Covid-19 pandemic, such elasticity allowed central banks and commercial banks to provide a discretionary increase in the money supply to manage global shocks.