As the world economy struggles to reopen in the wake of the COVID-19 lockdown, some believe that the first stages of recovery have begun.
Policy makers are moving from triage to recovery. They are realizing that more fiscal support will be needed to households and small businesses to prevent this liquidity crisis from turning into a solvency crisis.
The movement appears to be a shift from institutional crisis toward individual crisis, as the massive stimuli of national governments have kicked in. The bank also suggested that the recent financial crisis has driven a digital cash revolution.
Japan has already approved a $1.1 trillion stimulus package. The central bank also approved $274 billion in small business loans.
China and South Korea followed similar paths, approving $508 billion and $63 billion respectively.