Should we worry about central banks becoming activist capital allocators?

Nicolas Véron (PIIE), Stephen G. Cecchetti (Brandeis International Business School) and Signe Krogstrup (Danmarks Nationalbank)


February 24, 2021 9:00 AM to 10:00 AM EST
Virtual Event

Event Summary

The world's leading central banks are a long way from the days when they could see their objectives as stabilizing prices and employment. The Bank of Japan owns corporate equities, the European Central bank offers targeted loans and has a finely-tuned collateral policy, and the US Federal Reserve supports lending to the nonfinancial sector. As central banks become major allocators of credit, they blur the lines between fiscal and monetary policy. Are these developments inevitable, or should policymakers aim to reverse them?

Joining this episode of Financial Statements were:


Nicolas Véron, Senior Fellow, Peterson Institute for International Economics (PIIE)


  • Stephen Cecchetti, Rosen Family Chair in International Finance, Brandeis Business School
  • Signe Krogstrup, Member of the Board of Governors, Danmarks Nationalbank


Financial Statements is a virtual event series hosted twice a month by Nicolas Véron that explores changes in the world of finance, encompassing themes of financial services regulation, corporate finance and governance, systemic fragility and crises, and structural changes driving business and policy trends in the financial sector.