The extraordinary impact of the COVID pandemic required an aggressive monetary policy response to avert the risk of financial meltdown and sustain economies worldwide. Like all major central banks, the ECB reacted quickly. The measures taken are well known and need not be listed here. They led to further monetary accommodation and an additional, large injection of liquidity; they were effective in calming markets, protecting monetary policy transmission, and preventing a financial crunch and a deflationary spiral.

This time, besides monetary policy, other domains of public policy also became active immediately.

Fiscal policies responded vigorously and more or less simultaneously across the world, with measures to support households and firms. This included, to varying degrees, debt moratoria, loan guarantees, direct grants to firms, income support, and more.