Fiscal Policy

As the economic fallout from the Covid-19 pandemic continues to pile up, Harvard economist Ken Rogoff says that a global recession is almost certainly in the cards, at least in the short term. Already filings for unemployment benefits have surged, stock markets around the world have crashed (taking with them the gains of the past three years), and factories and shops are shutting down. Many countries are now implementing emergency fiscal stimulus policies in an attempt to stop the carnage, but the economic chaos is expected to be especially challenging for developing countries and emerging markets. China, the origin of the novel coronavirus, now offers a glimpse of optimism as it begins to reopen its economy following its own period of social distancing and economic lockdown, although it is unclear who will buy its products if the rest of the world is staying home.