Financial Policy During the COVID-19 Crisis
A special section of the GCFP blog to provide a forum for academics, practitioners and policymakers to analyze proposed policy initiatives and to suggest new ones
With the coronavirus pandemic causing massive disruptions to global financial markets and economies, identifying and implementing the most effective financial and economic policies without delay is imperative. The aim of this GCFP blog is to provide a forum for our expert affiliates—academics, practitioners and policymakers—to analyze proposed policy initiatives and to suggest new ones. We hope it will be a resource for policymakers, journalists, students and the wider GCFP community to learn more about the issues and the implications of different responses.
Consistent with the GCFP’s mission of non-partisanship and offering analysis but not policy advice, any recommendations contained in these posts are those of the authors and do not represent the views of the GCFP.
COVID-19 UPDATE: Financial Stability and Macroprudential Policy
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A discussion among financial industry leaders and academics about the current state of the markets and what we can expect in the coming months and years.
Funding pandemic relief: Monetise now
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Deborah J. Lucas, Sloan Distinguished Professor of Finance and Director, MIT Golub Center for Finance and Policy Refet A. Gürkaynak, Professor of Economics and Department Chair, Bilkent University
Federal stimulus favors wealthy investors and major companies
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In an article in The Hill, Bob Pozen explores how the recently enacted Cares Act has tax provisions that favor wealthy investors and large companies. There is proposed legislation now in Congress to [...]
Bayesian Adaptive Clinical Trials for Anti‐Infective Therapeutics during Epidemic Outbreaks
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We all have heard about these “unprecedented times” and how we need to throw the old play book out and try something new. For decades, we have had established protocols on [...]
Pandemics Depress the Economy, Public Health Interventions Do Not: Evidence from the 1918 Flu
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The COVID-19 pandemic damages the U.S. and the world economy and puts policymakers in an unfamiliar dilemma. Non-pharmaceutical interventions (NPIs) such as social distancing slow the spread of [...]
Opinion: What to know about how the coronavirus crisis will impact your money market fund
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Robert C. Pozen, Senior Lecturer, MIT Sloan School of Management and non-resident Senior Fellow, The Brookings Institution
3 Questions: Jonathan Parker on building an economic recovery
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Jonathan Parker, Robert C. Merton Professor of Finance at MIT Sloan and co-director at the MIT GCFP, recently provided answers on [...]
Policy Rx for the economy: Cash or credit?
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What is the best mix of cash and credit assistance to combat the economic fallout from the coronavirus pandemic, and what are the principles that should guide those choices? For policymakers [...]
A Simple Way Forward to Address the Economy During the Pandemic
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While Congress and the Administration wrestle with a massive $2 trillion response and many suggest expansive new loan programs, the simple way forward is to [...]
A Traditional Economic Stimulus Won’t Work. Here’s What Might.
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As the Covid-19 pandemic brings the U.S. economy to a standstill, a severe drop in consumer demand is putting vast numbers of businesses at risk of bankruptcy, and millions of [...]