Peter Kažimír is Governor of National Bank of Slovakia. Before assuming his current post in 2019, he served as Minister of Finance of Slovak Republic as well as Deputy Prime Minister of the Slovak Republic. Previously he was Vice-Chairman of the SMER-SD political party, a member of the National Council of the Slovak Republic and Vice-Chairman of the Finance and Budget Committee.
Mr Kažimír holds a Master´s degree in Foreign Trade Economics from the University of Economics in Bratislava.
In the recent decade, crises and lingering weak economic conditions have pushed monetary policy to venture out to uncharted waters. Just as many central banks were planning a review of their current strategies – learning from a decade of unconventional policies, evaluating its efficacy, limits, but also side effects – the covid19 shock has thwarted any efforts towards ‘normality’. Likewise, it took the scale and scope of the covid19 pandemic for monetary policy to be joined by fiscal policy and to bring the much-discussed double-barrel policy regime forward. But addressing the complex economic, employment and social consequences of this crisis calls for sensible policy sequencing on both central bankers’ and fiscal authorities’ parts, looking ahead. Central banks’ balance sheets are to swell significantly this year, in tandem with a colossal increase in public debt. In addition, there is a deepening link between fiscal and monetary policy domains. Against such a backdrop, how will we deal with the resulting fiscal deficits and prevent them from undermining markets? What are the perils for central bank independence and how can it be sustained going forward? What are the limits of quantitative easing and public borrowing? Are SGP rules dead forever? What about inflation and the pricing of different asset classes?