Coronavirus shutdown not a recession but an investment in survival: Fed's Bullard

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 66%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

WASHINGTON: In normal times massive unemployment and a collapse in economic output would be tragic. This time, as the coronavirus cloisters ...

No arguments about bailouts or"moral hazard" - the sticky issue of publicly funded rescues of bad actors.Recessions are the ordinary - even predictable - contractions in activity that mark the end of normal business cycles. Bullard, who has earned a reputation inside the Fed for a penchant to rethink problems and reframe debates, said this is anything but.

The spread of the coronavirus has touched off those discussions worldwide, but with an urgency that is shredding old hesitancies. United Kingdom Prime Minister Boris Johnson's government on Friday announced it would pick up 80 per cent of the national wage bill for the next three months. The recent jump in unemployment claims? That's a win, a sign that so-called government stabilisers are being used. The hope should be that such programs get"crazy heavy use" in coming weeks, he said.

Bullard was among the large group at the Fed who at first felt the virus risk would pass with little economic damage, as have other similar health scares such as SARS and ebola. For now what's usually good - jobs and production - are bad, and the headline numbers are going to be staggering. Bullard said the"core aim" can be kept simple:"keep everyone, households and businesses whole through the second quarter." Do it with a quick expansion of unemployment insurance to cover lost wages, and through grants and loans to business to cover losses from"unemployed" capital.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Meaning, much much worst situation than recession.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed's Bullard: Coronavirus shutdown not a recession but an investment in survivalIn normal times massive unemployment and a collapse in economic output would be tragic. Thank you M. Bullard, we will change the definition of recession in all the dictionaries accordingly.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »