The coronavirus is changing life as we know it. Here's our first episode of Blitz Talk - where we have short digestible conversations about the current state of the economy.
Living in the COVID-19 World
How does the Government respond?
Monetary Policy
Fed cuts rate to 0 - 0.25%
Fed buys $700B worth of securities to provide liquidity to repo markets
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements. Reduce
Fiscal Policy
Previous measures such as the Bush Economic Stimulus Act of 2008. Tax rebates created by the law were paid to individual U.S. taxpayers during 2008. Most taxpayers below the income limit received a rebate of at least $300 per person ($600 for married couples filing jointly).
This idea is not uncommon with Andrew Yang famously putting forward his Universal Basic Income (UBI) plan which includes a $1000/month stipend for low income families. The overwhelming virtue of UBI is its simplicity. It gets money to individuals in need, and out into the wider economy, more quickly than any other alternative.
Paid leave / Tax Rebates / Small Business loans / Medical Insurance coverage
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