Acknowledgments 3

1. Introduction: preparing for economic volatility 4

2. Outlook of global responses 6

3. Explaining responses 9

  Toward a crisis response framework 10

  Nature of the crisis 10

  Price transmission 12

  Fiscal space 13

  Interactions between fiscal and monetary policies 14

  The subsidy paradox 15

  The potential and limits of routine programs 17

4. Implications 20

  Breaking the cycle 20

  Scenarios 20

5. Conclusions 24

References 26

Endnotes 35