In the last three or four decades we have become accustomed to a regime where monetary policy does all the heavy lifting. But it has become clear that some parts of the mechanism do not work as well as they used to. Central bank policy was a lot more effective in curbing high inflation than it has been in teasing stubbornly low inflation higher. According to Senior Economist Willem Verhagen, “The job of pushing the economy back to full employment and achieving price stability is now in the hands of fiscal policymakers.” What we can expect from central banks in 2021 and how will the ECB and the Fed need to adjust their policy response to create a benign environment for economic growth?