Should central banks intervene in markets during economic downturns?

Context

Central bank intervention in markets—when authorities buy or sell assets to influence prices and economic conditions—has become a defining policy tool during downturns. Supporters argue intervention prevents financial collapse and stabilizes economies; critics worry it distorts markets, inflates asset bubbles, and delays necessary adjustments. The debate intensified after 2008 and 2020 crises, and recent currency interventions by major central banks show the practice remains contentious and actively deployed.