Global action needed if world want to avoiGreat Depression

   SONGCHEN/CHINADAILYTheG20ExtraordinaryLeaderseconomicpolicycoordinationtocounteractthene$5trillionintotheglobaleconomyaspartoftargetedfiscalpolicies,economicmeasuresandguaranteeplanstocounteractthesocial,,morethan610,,,theglobaloutbreakwillcontinue,,,consumptiona,,aggregatesupplyhasdroppedsharplyasthe,,alvaluechain,,,,exceeding700,000forthefirsttimesincestatisticswereavailableandsurpassingthepeakof667,,,,respectivelyinUS,,’simpactontheglobaleconomyescalates,internationalorganizationsandmarkepid,,onMarch2,(IIF),(-).Financialmarketvo,circuitbreakerwastriggeredinequitymarketinUnitedStates,Canada,Brazil,Korea,India,Indonesia,Thailand,Kuwait,,,andthestockindicesofBritain,France,Germany,Italy,,,yen,,,,,,theUSFederalReserveenhancedtheexistingcurrencyswaplineswiththeEuropeanCentralBankandfourothercentralbanks,andestablishdhighof$83billion,duetouncertaintiesfromthepandemic,$1trillionlendingcapacitytosupportcountriesinrespondingtothepandemic,withdebtservicereliefforleastdevelopedcountries(throughCatastropheContainmentandReliefTrust),potentiallyenhancedaccesstoitsemergencyfacilities,andf$,theWorldBankandtheIMFjointlycalledonallofficialbilateralcreditorstosveimpactofthepandemicontherealeconomy,lackofpr,,amidintensifiedimpactofthepandemicontherealeconomy,investors’confidenceremainsweak,,elevatedforyears,stockpri,thegloballiquidityisgenerallyample,,liquidit,impactedbytheoutbreak,shrinkingprofitabilityandthealreadyhighcorporatedebtmayl,,,returnedto"lowerzerobound",,Japan,,centralbanksandmonetaryauthorit,$$100billionrespectivelyonMarch6and18,andlaunchedthethirdroundof$,theeurozonefinanceministersagreedtotemporarilyrelaxthefiscaldeficitrulesofMaastrichtTreaty,“fiscaldeficitbelow3percetofGDP,publicdebttoGDPrationomorethan60percent”,,thespaceforl,thepolicyresponsesattheinitialstagefailedtostabilizethemarketasexpected,mainlybecausemonetarypolicyresponses,howeverrapidandaggressive,couldneitherc,,G20andothermajorcountrieshavesteppedupmeasuresofpandemiccontainmentandmacroeconomicpoliciestomitigatetheimpactofthepandemiconthehousehold,s,pandemicprevention,constrainedbyinadequatemedicalsystem,andlimitedpolicyspac,suchdevelopingecthepandemicwiththatofthe"GreatDepression”(1929-1933).Thoughtoopessimistic,suchopinionsremindedpolicymakersallovertheworldtobevigilantabouttherisks,“GreatDepression”whentheeconomicrecessioncontinuesformorethan18months,theGDPdeclinesbymorethan10percent,,"GreatRecession”afterthefinancialcrisisin2008didnotmeetthestandardsofa"GreatDepression".Someinstitutionsbelievethattheshort-termeconomicrecessionthistimemaybeworsethanthatin2008,butitremainstobeseenwhethertheduration,outputdeclineandunemploymentcanmeetthedefinitionofa"GreatDepression”.Inascenariowhereauthoritiesofallcountriesworktogethertofightthepandemic,effectivelycontainitsspreadandsupporttheglobaleconomy,,ifthepandemicspinsoutofcontrol,therealeconomymaydeterioratewiththeoutbreakofpotentialfinancialrisks,thenthepossibilityofa"GreatDepression"tnecessarilyrepresentthoseofChinaDaily.。

( 发布日期:2020-04-07 18:27 )