Containing the Economic Recession

In r esponding to the coronavirus epidemic’s threat to the U.S. and global economies, policymakers would be well advised not to underestimate the global economic damage likely to flow from that epidemic. It will also be important for them to distinguish between what is beyond their control and what they might be able to control.

At this stage, what should be clear is that policymakers will not be able to prevent a meaningful U.S. and global economic recession over the next two quarters. However, what is still very much subject to their control is their ability to design and coordinate economic policies in a manner that might prevent the economy from going into a downward deflationary spiral. Read Full Article »