Market / Economy / Global Economics & Governance / coronavirus / fiscal policy / foreign exchange / G7 / Monetary policy / stock markets

A letter to Santa, the G7

Posted On: Mar 17, 2020   |   Posted By: Bruegel

A letter to Santa, the G7

This opinion piece was originally published in El País.
Since the coronavirus outbreak became a pandemic, markets have plummeted. Global risk aversion has spiked, safe assets have becoming hugely expensive and the dollar - and gold - are kings. Against such a backdrop, central banks have scrambled to react, as quickly as possible, to the market deluge. But action is not enough and all eyes are on the G7 meeting.
Today, international cooperation is even more necessary than in 2008 for a number of reasons. First, the shock to the real economy is bound to be bigger, as the coronavirus pandemic not only affects demand but also supply. Second, its direct impact on companies' cashflows as well as households' income will worsen banks' asset quality and solvency at a time where their regulatory constraints are much tougher than before 2008. Third, beyond banks, the non-banking part of the financial system has become huge and lacks direct access to central bank liquidity. Fourth, the global financial system is even...

Continue reading ...

 








Trump signs social media executive order challenging platforms' liability...

Trump signs social media executive order challenging platforms' liability protections

US President Donald Trump has signed an executive order aimed at the major social media platforms, denouncing the tech behemoths as “tantamount to a monopoly.” The order may... Read more ...

Minnesota rolls out National Guard to stop riots & looting, ‘ensure safety'...

Minnesota rolls out National Guard to stop riots & looting, ‘ensure safety' of peaceful protests over George Floyd killing

Minnesota Governor Tim Walz has called in National Guard units after law enforcement failed to “provide safety” in Minneapolis as furious protests over the police killing of... Read more ...

President Trump preparing executive order targeting social media protections

President Trump preparing executive order targeting social media protections

The order comes days after the president lashed out at Twitter for applying fact checks to two of his tweets. Read more ...

Man says he broke into a bank to heat up Hot Pockets in a break room microwave

Man says he broke into a bank to heat up Hot Pockets in a break room microwave

A man broke into a Wells Fargo Bank in San Diego early Wednesday, but he says it's not for the reason most might expect. Read more ...

Over 40 million Americans have filed for unemployment during the...

Over 40 million Americans have filed for unemployment during the pandemic-real jobless rate over 23.9%

Subscribe to How To Reopen , our weekly newsletter on what it takes to reboot business in the midst of a pandemic . More than 2.1 million Americans filed initial unemployment... Read more ...

Dr. Fauci: Second wave of COVID-19 can be avoided

Dr. Fauci: Second wave of COVID-19 can be avoided

Dr. Anthony Fauci says a second wave of the novel coronavirus can be avoided if the United States can improve testing and contact tracing. Read more ...

Boston Marathon canceled for 1st time in 124-year history

Boston Marathon canceled for 1st time in 124-year history

BOSTON - The Boston Marathon has been canceled for the first time in its 124-year history. Read more ...

South Carolina mom, boyfriend charged after remains of special needs...

South Carolina mom, boyfriend charged after remains of special needs daughter found in dresser

Authorities say a South Carolina woman and her boyfriend have been arrested and accused of killing the woman's disabled daughter and hiding her body inside a dresser drawer. Read more ...

Trump Readies Executive Order Targeting Protections For Social Media Companies

Trump Readies Executive Order Targeting Protections For Social Media Companies

The president had threatened social media companies with new regulation or even shuttering, but he alone can't do that. Read more ...

NFL coaches could return to team facilities next week

NFL coaches could return to team facilities next week

Roger Goodell said Thursday that the virtual offseason is being extended for two more weeks. Read more ...