The headquarters of the People’s Bank of China in Beijing. Central banks across the globe have come under pressure to expand their balance sheets and pursue sometimes risky measures to help keep their economies afloat during the Covid-19 pandemic. Photo: Reuters The headquarters of the People’s Bank of China in Beijing. Central banks across the globe have come under pressure to expand their balance sheets and pursue sometimes risky measures to help keep their economies afloat during the Covid-19 pandemic. Photo: Reuters
The headquarters of the People’s Bank of China in Beijing. Central banks across the globe have come under pressure to expand their balance sheets and pursue sometimes risky measures to help keep their economies afloat during the Covid-19 pandemic. Photo: Reuters
Aidan Yao
Opinion

Opinion

Macroscope by Aidan Yao

Zero interest rates, heavy debt will be new normal in coronavirus recovery

  • The lessons learned from the 2008 global financial crisis suggest shutting off the liquidity tap could prove more challenging than opening it
  • Ultra-accommodative monetary policy is here to stay, with central banks also engaging in riskier asset purchases and even negative interest rates

The headquarters of the People’s Bank of China in Beijing. Central banks across the globe have come under pressure to expand their balance sheets and pursue sometimes risky measures to help keep their economies afloat during the Covid-19 pandemic. Photo: Reuters The headquarters of the People’s Bank of China in Beijing. Central banks across the globe have come under pressure to expand their balance sheets and pursue sometimes risky measures to help keep their economies afloat during the Covid-19 pandemic. Photo: Reuters
The headquarters of the People’s Bank of China in Beijing. Central banks across the globe have come under pressure to expand their balance sheets and pursue sometimes risky measures to help keep their economies afloat during the Covid-19 pandemic. Photo: Reuters
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Aidan Yao

Aidan Yao

Aidan Yao is senior emerging Asia economist at AXA Investment Managers. Prior to joining AXA IM, he was a senior financial market analyst at the Hong Kong Monetary Authority for two years. He started his career at the Reserve Bank of New Zealand in 2007, serving as an economist and later senior financial market analyst until late 2011. He holds a master degree in finance (2006) and a bachelor degree in economics and finance (2005) from the University of Otago (NZ). He is also a chartered financial analyst.