Draghi: we face a war against coronavirus and must mobilise accordingly | Free to readHigher public debt levels will become an economic feature and be accompanied by private debt cancellation Bold steps to pump coronavirus rescue funds down the last mileCentral bank liquidity has to reach affected individuals and companies urgentlyThe US must take equity stakes in the companies it rescuesAmerican model should be the War Production Board and the New DealThe Federal Reserve must reduce long-term damage from coronavirusReviving crisis-era programmes is a first step but the central bank may need to buy corporate bondsThe ECB will do everything necessary to counter the virusWe are ready to increase the size of our asset purchase programmesWe may have to prepare for a longer coronavirus crisisAn outbreak lasting more than a few months would require extending short-term responsesMore from this SeriesCentral banks must evolve to help governments fight coronavirusThey need to make sure interest rates don’t rise in an uncontrolled wayEnd the dog-eat-dog mentality to tackle the crisisA decade ago, nations realised that if they did not stand together they would fall separately. That same unity is vital nowForce global banks to suspend bonuses and payoutsThis simple step would free up trillions of dollars of additional lending capacityRich countries cannot win the war against coronavirus aloneWe need to fight this pandemic into submission everywhere in order to relax measures anywhereWe need tax breaks and direct grants to sectors hit by pandemicEven people with plenty of spare cash cannot go out and spendUniversal Basic Income is an affordable and feasible response to coronavirusA cash payment made to everyone, with no strings attached, can support workers through the crisisThe virus is an economic emergency tooAs borrowers and spenders of last resort, governments must act now to avert a depression
Draghi: we face a war against coronavirus and must mobilise accordingly | Free to readHigher public debt levels will become an economic feature and be accompanied by private debt cancellation Bold steps to pump coronavirus rescue funds down the last mileCentral bank liquidity has to reach affected individuals and companies urgentlyThe US must take equity stakes in the companies it rescuesAmerican model should be the War Production Board and the New DealThe Federal Reserve must reduce long-term damage from coronavirusReviving crisis-era programmes is a first step but the central bank may need to buy corporate bondsThe ECB will do everything necessary to counter the virusWe are ready to increase the size of our asset purchase programmesWe may have to prepare for a longer coronavirus crisisAn outbreak lasting more than a few months would require extending short-term responsesMore from this SeriesCentral banks must evolve to help governments fight coronavirusThey need to make sure interest rates don’t rise in an uncontrolled wayEnd the dog-eat-dog mentality to tackle the crisisA decade ago, nations realised that if they did not stand together they would fall separately. That same unity is vital nowForce global banks to suspend bonuses and payoutsThis simple step would free up trillions of dollars of additional lending capacityRich countries cannot win the war against coronavirus aloneWe need to fight this pandemic into submission everywhere in order to relax measures anywhereWe need tax breaks and direct grants to sectors hit by pandemicEven people with plenty of spare cash cannot go out and spendUniversal Basic Income is an affordable and feasible response to coronavirusA cash payment made to everyone, with no strings attached, can support workers through the crisisThe virus is an economic emergency tooAs borrowers and spenders of last resort, governments must act now to avert a depression