A2 Basic UK 313 Folder Collection
After playing the video, you can click or select the word to look it up in the dictionary.
Report Subtitle Errors
00:00:00,000 --> 00:00:04,980 The spread of the coronavirus, Covid-19,
has been a major shock to the growth
prospects of the global economy and the euro area economy.
The storm is upon us.
The Covid-19 disease that has devastated China, Italy,
and Iran is about to hit many other countries
with full force.
But the economic damage is already here.
We are starting now to see the data of just how
bad the economic damage is.
And it doesn't come just from the disease,
but from the measures governments are forced
to take to stop its spread.
They have taken draconian measures in one country
after another in order to stop people
from being physically near each other
and from socially interacting.
But this means that swaths of the economy
are being shut down.
And we are looking now at a downturn at least as
big as in the global financial crisis,
and very probably quite a lot larger and deeper.
In response to this, policymakers have taken
unprecedented actions in order to try to minimise an economic
hit that we know will be big.
They have used both monetary policy and fiscal policy
in unprecedented ways.
Monetary policy is what central banks do.
Fiscal policy is what governments
do with their budgets.
Yes, it will be significant.
But that's why we're doing everything we're doing.
We're doing whatever it takes to get through it.
And things will be better in time.
I think we're going to do something that gets money
to them as quickly as possible.
That may not be an accurate way of doing it,
because obviously some people shouldn't
be getting cheques for $1,000.
And we'll have a pretty good idea
by the end of the day what we're going to do be doing.
The world's central banks have done three types of things
in order to reduce the economic consequences.
00:01:51,610 --> 00:01:54,150 The first is to reduce interest rates in order
to make things easier for borrowers
to continue to borrow and to have a little bit
more extra cash.
Especially the Bank of England and the Federal Reserve,
the central banks of the US and the UK,
have put in place dramatic and very fast interest rate cuts.
00:02:13,670 --> 00:02:15,950 The second thing that central banks have done
is to intervene in markets, put a lot of money
into financial markets in order to make sure
that they function properly, and in order
to make it easier for banks to continue
to lend into the real economy.
They have also reduced, taken away some regulations,
and lightened some rules, again, to make
it easier for banks to lend.
00:02:38,080 --> 00:02:39,610 And the third thing they have done
is that they have gone on a buying spree.
Central banks have put a lot of money on the line
in order to buy assets such as government
bonds, corporate bonds, again in order
to make it easier for people to borrow and finance themselves
through this crisis.
And that means that central bank balance sheets that
were already big after the last crisis
are now set to become even quite a lot bigger.
What about the fiscal policymakers, governments?
They are also using their budgets vigorously
and in unprecedented quantities in order to cushion the shock.
00:03:31,180 --> 00:03:32,860 Most governments certainly in Europe
are committing to subsidising the wages of people
who are being laid off.
The intention is to prevent what is hopefully
a short shock from the disease from destroying
jobs and destroying companies to such an extent
that when governments can lift the restrictions on movement
and interaction, there are no jobs or shops or companies
to go back to.
This will cost a lot of money.
So governments are looking at increasing their debt
And in some cases countries that already
have very large public debt burdens after the last crisis,
people are somewhat worried that they will
find it difficult to borrow.
But that's when we go back to the central bank action again.
When central banks buy government bonds in what is
called QE - quantitative easing - or asset purchase programmes,
they ensure that the borrowing costs for governments are low.
So the intention, at least, is to allow governments
to borrow as much as they need to do whatever it takes
to protect the economy as much as we can
from the deepest shock in generations.
    You must  Log in  to get the function.
Tip: Click on the article or the word in the subtitle to get translation quickly!


Coronavirus: how to tackle the economic crisis | FT

313 Folder Collection
洪子雯 published on March 26, 2020
More Recommended Videos
  1. 1. Search word

    Select word on the caption to look it up in the dictionary!

  2. 2. Repeat single sentence

    Repeat the same sentence to enhance listening ability

  3. 3. Shortcut


  4. 4. Close caption

    Close the English caption

  5. 5. Embed

    Embed the video to your blog

  6. 6. Unfold

    Hide right panel

  1. Listening Quiz

    Listening Quiz!

  1. Click to open your notebook

  1. UrbanDictionary 俚語字典整合查詢。一般字典查詢不到你滿意的解譯,不妨使用「俚語字典」,或許會讓你有滿意的答案喔