The old joke about the banker who gives you an umbrella when the weather is nice, and takes it away when it starts to rain, has for some time now only applied to commercial bankers, not central ones. On the contrary, large central banks have become permanent 'umbrella holders' for both states and markets, with only the size of the umbrella and the style of holding it changing. Moreover, thanks to the significant withdrawal of fiscal policy after the last crisis, monetary policy has become a key factor in macroeconomic trends, although it seems that due to the outbreak of the corona crisis, it will finally receive assistance from state treasuries.
Lonely in their fight against market winds, central banks have been forced to innovate and adapt using methods that were once deemed unacceptable, but until recently, this mainly applied to large players such as the US Fed, the European Central Bank, and the Bank of Japan. On the other hand, a small Croatian National Bank opted for a very conservative approach to maintaining the exchange rate and supervising the banking system, without any ventures into the unknown. Until a few months ago when it decided to make a major leap and purchase government bonds.
What this is about and what you can read further in the new edition of digital and printed Lider.
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