{"id":51513,"date":"2020-03-02T07:57:48","date_gmt":"2020-03-02T12:57:48","guid":{"rendered":"https:\/\/olduvai.ca\/?p=51513"},"modified":"2020-03-02T07:57:50","modified_gmt":"2020-03-02T12:57:50","slug":"the-good-bad-ugly-of-virus-response-el-erian-admits-govts-central-banks-can-only-do-so-much","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=51513","title":{"rendered":"The Good, Bad, & Ugly Of Virus Response: El-Erian Admits Govts & Central Banks Can Only Do So Much"},"content":{"rendered":"\n

The Good, Bad, & Ugly Of Virus Response: El-Erian Admits Govts & Central Banks Can Only Do So Much<\/a><\/h3>\n\n\n\n

Look for this week to be full of news about governments and central banks signaling their \u201cwhatever it takes\u201d willingness to take additional policy measures to fight the contractionary impact of the coronavirus on virtually every economy around the world. <\/strong>Already, the Federal Reserve signaled on Friday readiness to loosen monetary conditions in the United States while Italy announced on Sunday a \u201cshock therapy\u201d of fiscal measures.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

As more announcements materialize during the week, it will be crystal clear that the question will not be about the willingness to act but about the effectiveness of those actions.<\/strong> For the most part, the answer will be only partly satisfactory in the short term until two underlying health conditions change. Less obvious will be the need to weigh immediate benefits \u2014 partial and as necessary as they are \u2014 against the possibility of longer-term unintended consequences associated with the inevitable use of ill-suited policy tools for the task at hand. Those include more borrowing of growth from the future and even greater reliance on activities bolstered by central bank liquidity injections.<\/p>\n\n\n\n

An increasing number of sectors and countries are experiencing sudden-stop dynamics as the economic effects of the coronavirus spread more widely around the world.<\/strong> Both demand and supply are being hit hard and in multiple ways. For example, News Corp., the owner of the Wall Street Journal, banned nonessential travel for its employees this weekend; more conferences are being cancelled around the world; airlines are reducing flights; and companies are asking employees to work from home.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

The Good, Bad, & Ugly Of Virus Response: El-Erian Admits Govts & Central Banks Can Only Do So Much Look for this week to be full of news about governments and central banks signaling their \u201cwhatever it takes\u201d willingness to take additional policy measures to fight the contractionary impact of the coronavirus on virtually every […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4],"tags":[83,13306,28817,1849,2767,7258,4318],"class_list":["post-51513","post","type-post","status-publish","format-standard","hentry","category-economics","category-environment","tag-bloomberg","tag-boomberg","tag-coronavirus","tag-financial-markets","tag-mohamed-el-erian","tag-viral-outbreak","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51513"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51513\/revisions"}],"predecessor-version":[{"id":51514,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/51513\/revisions\/51514"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}