The COVID-19 pandemic triggered an unprecedented global economic shock, simultaneously disrupting supply and demand and generating severe financial market instability. In response, central banks across advanced and emerging economies implemented large-scale conventional and unconventional monetary policy interventions. While a rapidly growing empirical literature has examined the effectiveness of these measures, findings remain fragmented and sometimes contradictory due to differences in methodologies, country contexts, policy instruments, and outcome variables. This study addresses this gap by conducting a comprehensive meta-analysis of empirical studies published between 2020 and 2023 that assess the effectiveness of monetary policy during and following the COVID-19 crisis. Drawing on 42 studies and 187 standardised effect sizes, the analysis employs a random-effects model to estimate the overall impact of monetary policy on key macroeconomic and financial outcomes, including output, inflation, employment, and financial stability. The results indicate a statistically significant and positive pooled effect size, confirming that monetary policy played a meaningful stabilising role during the pandemic-induced economic shock. Subgroup analyses reveal that unconventional monetary policy tools, such as quantitative easing and liquidity support measures, were more effective than conventional interest rate adjustments, particularly in an environment constrained by the zero lower bound. Additionally, monetary policy effectiveness was found to be stronger in advanced economies than in emerging markets, reflecting differences in financial market depth and institutional capacity. Tests for publication bias suggest that the results are robust. Overall, the findings highlight the continued relevance of monetary policy as a crisis management tool and underscore the importance of flexible and credible policy frameworks for addressing future large-scale economic shocks.
Monetary Policy Effectiveness, Economic Shocks, COVID-19 Pandemic, Meta-Analysis, Unconventional Monetary Policy, Quantitative Easing, Central Bank Interventions.
. Monetary Policy Effectiveness during Economic Shocks: A Meta-Analysis of COVID-19 Era Studies. Indian Journal of Modern Research and Reviews. 2023; 1(1):83-87
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