Lower rates stimulate job growth and employment---empirically proven during COVID
Vereckey 21 – editor, citing Olli Rehn, governor of the Bank of Finland
Betsy Vereckey, “Should central banks address inequality? Experts weigh in,” MIT Sloan School of Management, 8-3-21, https://mitsloan.mit.edu/ideas-made-to-matter/should-central-banks-address-inequality-experts-weigh
Other panelists took a more expansive view. Olli Rehn, governor of the Bank of Finland, said that monetary policy should be used to stimulate economic activity and assist in saving and creating jobs, especially during times of crisis.
“Overall, the easing of monetary policy has assisted in diminishing inequality in recent years in the Euro area, especially via increased employment for lower-income households,” he said, noting that 12 million jobs were created in Europe during the COVID-19 crisis and that monetary policy “significantly contributed” to that progress.
“Cooperation between monetary and fiscal policy in the crisis response has helped to reduce long-term job losses and bankruptcies,” Rehn said, thus contributing to “the overall wellbeing of the public.”