SARS-CoV-2 infection managed to bring a significant part of the economy to a halt and it is expected for lots of companies to have cash flows problems (e.g. impossible to pay the suppliers). I have recently saw a Romanian economist speaking about this issue and I was wondering how US and EU are dealing with this.
The extraordinary actions of the Federal Reserve on Monday morning can be boiled down to two sentences: There is a rapidly developing shortage of dollars across the economy. And the Fed will do anything it needs to, on any scale imaginable, to end this shortage.
Its announcement was phrased in the dry bureaucratese typical of statements from a central bank. But it contains a powerful idea. The Fed, the one entity in the world with the power to create dollars out of thin air, has every intention of doing so at whatever magnitude is necessary to try to reduce the severity and limit the duration of the coronavirus economic crisis.
I am wondering why the Fed can print dollars while ECB cannot print Euros. Especially considering the "desperate times" of the new SARS.
Question: Can the European Central Bank "print money" to partially mitigate the economical effects of the coronavirus infection spreading?