Coronavirus and the World Economy: What to Expect?

An unprecedented economic policy response to an extreme medical emergency.

The extreme medical emergency many economies are facing has led to an unprecedented policy response.

 
Pandemic update

The virus continues to spread rapidly on both sides of the Atlantic. In Europe, the total number of confirmed infections has risen by 61% within three days to 150,000, as of March 22.

From a lower level, the United States is following Europe, with a 185% surge to 27,000 during this period.

 
Unprecedented economic policy response

Policy makers are scaling up their responses, imposing tighter restrictions on daily life and initiating ever bigger support packages on both sides of the Atlantic in rapid succession.

To respond properly to the coronavirus crisis, previous economic policy taboos, including those on the proper role of the government in the United States and of fiscal rules in Europe, are being ditched or suspended as required.

The unprecedented policy response will prevent a financial crisis that would otherwise exacerbate the recession while the world tackles the extreme health emergency.

The main point is this: Economies will rebound.

Συνέχεια ανάγνωσης εδώ