Central Bank Policies of Fragile Five Countries in the Covid-19 Process

Abstract

The Covid-19 pandemic has been a trouble and deeply affected the economic conditions of countries. Economy administrators and particularly central banks have been tested seriously in this period. In this period, one of the essential tasks of central banks is to provide the need of liquidity of markets. However, the main objective of Central Banks is price stability. Monetary policies should be applied sensitively by central banks, especially in crisis periods. While liquidity needs of markets taking place, central banks intervene and effort to support declining liquidity. This study examined central banks' monetary policies in the fragile five countries (Turkey, Brasil, India, Indonesia, and South Africa). We investigated these countries' central bank policies, including interest rate, inflation, central bank reserve, exchange rate, and fragile states index in the pandemic period. We determined that the most fragile country among the five countries is Turkey according to the fragile states index, inflation, interest rate, and central bank reserve in the pandemic period.