25 March 2020 In recent weeks, policymakers world-wide have repeatedly pledged "to do whatever it takes" to offset the economic damage wreaked by the Covid-19 outbreak. In general, the aim has been to provide needed medical resources, allocate compensation for sick leave, provide direct payments to workers losing their jobs, and to give support to [...]
20 March 2020 Initial data from China indicate the economic impact of the Coronavirus and efforts to prevent its spread will be significant. I will make some preliminary global economic projections, although they come with a greater degree of uncertainty than normal. Perhaps more importantly, I will set out some guideposts about how to assess [...]
16 March 2020 Global central banks have announced additional emergency stimulus measures. In particular, the US Federal Reserve reduced its policy rate by 100 basis point, which now stands near zero. In addition, the Fed will resume aggressively its quantitative easing program. During the Global Financial Crisis global markets were reassured by such assertive policy [...]
13 March 2020 The Covid-19 pandemic appears to be moving into a new phase. While the response differs between countries, most governments are transitioning from the contaiment phase towards focusing efforts on delaying the spread of the disease. This strategy hopes to lower the peak number of infections. The plan seeks to buy time; thereby, [...]