Why 'Whatever it takes' still holds sway - especially in emerging markets

Draghi's phrase remains yardstick for monetary policy

"Whatever it takes", the seminal phrase coined by Mario Draghi at the height of the eurozone crisis in 2012, has never been more poignant.

The response to the Covid-19 crisis has been unprecedented in the history of central banking, with the combined balance sheet size of the Federal Reserve, European Central Bank, Bank of Japan and People's Bank of China now in excess of $27trn.  Policy makers will continue to aggressively mitigate the ongoing economic fallout from the pandemic, in our view, injecting ever increasing liquidity and boosting asset purchases.  Throwing a lifeline: ECB support may save sinking economies As a result of this bold and seemingly unlimited wave of liquidity, negatively yielding debt has now b...