International Monetary Fund Managing Director Kristalina Georgieva on Monday called on governments to take coordinated financial and monetary stimulus measures to stop the Coronavirus from causing long-term economic damage.
The IMF chief suggests that coordinated fiscal action on the scale of the 2008/2009 financial crisis maybe necessary. In 2009 alone, the G-20 had deployed about 2% of its GDP in stimulus, or about $900 billion of today's money, so there was a lot of work to be done, she said.
Governments should continue to prioritize health spending and support the most affected people and companies with policies such as paid sick leave and targeted tax relief.
On monetary policy, she said central banks should continue to support demand and boost confidence by easing financial conditions and ensuring credit flow into the real economy, citing emergency actions by the US Federal Reserve and other central banks. Banks.