Category Archives: Finance

Finance: “Coronavirus fallout could be worse than the financial crisis”

Central banks are likely planning to cut interest rates or provide stimulus.

Source: Coronavirus fallout could be worse than the financial crisis

It’s a supply side issue, not a demand side issue (mostly). With businesses, manufacturing, transport and distribution systems closing, its a supply side problem, not so much a demand side problem. Lowering interest rates can spur some demand but if the supply cannot be increased, economic activity will remain subdued.

Also, travel is getting pummeled due to event cancellations and closure of public events and venues. Lower interest rates will not solve this.