Over the last two years, in response to the economic challenges brought on by COVID19, Central Banks around the world, including Federal Reserve in the USA, and Central Banks in Europe, Japan, China and Australia have adopted massive economic stimulatory programs. These have included various methods of both Monetary and Fiscal stimulus.
Monetary stimulus occurs when a central bank tries to boost the economy by managing the supply of money. This means trying to increase the total amount of money in the economy and decrease the cost of accessing it. Over the last two years, this has been accomplished in two ways.