The coronavirus pandemic is causing a huge contraction and high unemployment in most economies worldwide. According to the St Louis FED projections, the economic American freeze could send the unemployment rate past 32%.
This may encourage policymakers to try new strategies, including unconventional monetary finance like helicopter money, that is, the creation of money by central banks and its distribution for free to taxpayers or companies in order to solve unemployment and economic problems. Continue reading “Coronavirus Pandemic and Helicopter Money”
The stay-at-home-social-distancing coronavirus policies are being supported by financial packages of billions or trillions of dollars.
And also by active monetary policies taken by the central banks: the injection of money in the economy through loans at zero interest rates (or even negative interest rates) or quantitative easing policies: the purchasing of bonds and other debt instruments. Continue reading “What are the alternatives to the stay-at-home coronavirus pandemic policies?”
The coronavirus economic crisis is raising multiple ethical issues.
Politicians are facing the type of moral dilemmas raised by philosophers: do we have the right to take measures that will lead to the death of hundreds of thousands or even millions of people, to save the jobs and the way of life of billions? Continue reading “The present pandemic crisis, ethics and the Great Depression”
According to President Trump the stay-at-home measures chosen to fight the Covid-19 can be worse than the problem.
We are risking record-high levels of unemployment and a huge decrease in the economic output, all over the world; some economists are already previewing a fall of 30% in the American GDP, but things can turn a lot worse. Continue reading “Bill Gates, Trump, Ethics and Economics”
According to an article published in the New York Times, in 23/03, “President Trump was considering reopening the economy, over health experts’ objections”.
“Our country wasn’t built to be shut down,” President Trump has said in a briefing. “America will, again, and soon, be open for business. Very soon. A lot sooner than three or four months that somebody was suggesting. Lot sooner. We cannot let the cure be worse than the problem itself.” Continue reading “Reopening the economy despite the coronavirus pandemic?”