Lightning-Fast Economic Collapse Makes Experts Scramble To Avoid Global Depression
“The depth of the recession, just in terms of jobs lost and fallen output, will not compare to anything we’ve seen in the last 150 years. The only question is duration,” said Kenneth Rogoff, a Harvard professor and former IMF chief economist.
Inside The Global Race To Prevent Another Depression
Economic firefighters around the world have a problem they’ve never seen before: a lightning-fast economic collapse strapped to a virulent global pandemic and wild, whipsawing financial markets threatening to amplify the damage. From Washington to Brussels to Frankfurt to Berlin and beyond, officials in advanced economies are rolling out the biggest fiscal and monetary policy bazookas they’ve ever imagined. Some of the players, notably Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin, have forged a close fire-fighting partnership echoing their predecessors’ during the 2008 financial crisis. (White, Guida and Karnitschnig, 4/13)
The Wall Street Journal:
Longer-Term Prospects Of Coronavirus Response: Bigger State, Higher Taxes
World leaders from President Trump to President Emmanuel Macron of France and Queen Elizabeth II of Britain have invoked the wartime spirit as they rally citizens to defeat the new coronavirus. Like the great wars of the 20th century, some analysts and historians think the current crisis could fuel a new era of big government in which public officials control more of the levers of the economy, for better or for worse. (Fairless and Douglas, 4/12)
The New York Times:
Big Business Pledged Gentler Capitalism. It’s Not Happening In Pandemic.
Last August, the chief executives of 181 of America’s largest corporations signed a document pledging their commitment to run their companies for the benefit of workers and communities, and not just for shareholders. Some pundits celebrated the statement from the Business Roundtable as a historical milestone, the moment when corporate executives demonstrated sensitivity to public anger over economic inequality. But others dismissed the document as a canny public relations move: So long as executive pay remained tied to stock prices, shareholder interest would remain supreme. (Goodman, 4/13)