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Without limits, allowing a government to finance itself by creating money can lead to hyperinflation. But these risks can be manageable: the quantitative easing of the past decade, despite predictions, has not lifted inflation above the main central banks’ 2 per cent targets.
The Overseas Development Institute's SET (Supporting Economic Transformation) examines the vulnerability of countries to the coronavirus outbreak, the economic impacts and policy responses in a wide-range database of selected sources and other articles.
The coronavirus outbreak, which was first detected in China, has infected people in 185 countries. Its spread has left businesses around the world counting the costs.
The latest federal data revealed 20.5 million jobs lost in April, and unemployment rivaling the Great Depression. A program to provide loans to small businesses ran dry. President Trump will be tested daily after a valet fell ill.
Over all, analysts at Goldman Sachs forecast that earnings of companies in the S&P 500 will decline by 33 percent this year, but then surge by more than 50 percent in 2021.
Senior figures across Europe, from the presidents of the European Council and the European Parliament to the prime minister of Spain and the head of the OECD have all called for a "Marshall Plan" to deal with the enormous human and economic costs of the coronavirus crisis. But to give these references substance, leaders need to remember what the Marshall Plan really meant. It is about politics and strategy as much as it is about money.
Leaders’ comparison with post-war recovery program is largely misplaced, experts and officials say.
