Comments from IMF chief economist Gopinath
- Governments need ‘substantial’ targeted measures to combat economic drag from virus
- Rate cuts and monetary stimulus may instill confidence but likely effective only after business conditions normalize
- Central banks should be ready to boost liquidity and other lending to small business
- Governments should consider temporary loan guarantees
Is it just me or are temporary loan guarantees insane? If a business is struggling, banks are going to offload that so fast on the government and they aren’t going to take it back. It’s basically a bailout in camouflage.