Name: Gita Gopinath - The Economic Aftermath of Coronavirus | The Daily Social Distancing Show
Uploaded: 2020-04-13T16:08:53.000Z
Duration: 6 min 18 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Gerund

Gita Gopinath, thank you so much for joining us.

Welcome to The Daily Social Distancing Show.

(chuckles) I think economists are some of the people

the second biggest "loser," I guess, in coronavirus.

which people need to sustain themselves and survive.

about what countries are going through and what they need.

What have you garnered, you know, from...

from your insights into what countries need right now?

So, the first thing I just want to flag, uh, Trevor,

is that we've had over 90 countries, uh, come to us

Uh, and I think what we need to keep in mind

is this crisis is very different from any others we've seen.

the Great Recession, which is the global financial crisis,

So, it... So, firstly, the shock is so unique.

I mean, like you said, this is a human tragedy first.

This is not something that we're used to.

and telling them to think about what comes next,

because economic policy is not going to be able

-Mm-hmm. -All of that comes from public health and science.

And the third factor is that while in the past,

if you lent a country money and you told them to spend it,

we actually don't want people to go out and spend.

So, this is about maintaining their economic system

so that when this disease is under control,

I know this may sound like a really stupid question,

but is there a point where money just runs out?

What is the tipping point that, as an economist,

given the scale of spending that we're seeing,

with their debt-to-GDP going up quite substantially,

with central banks putting in a lot of stimulus.

Now, now, in theory, central banks can always put in

With that said, there are limits to what they can also do.

But that said, you have to think about the counterfactor,

which is if you don't do what you're doing now,

you could actually end up in a worse situation

because the economic activity would collapse so severely

that your debt-to-GDP would be even worse.

if you didn't do what was needed right now.

a-a real underlying cause in the same way.

It's not, you know, it's not a-a loophole

or it's not a failure in real estate that's happened.

how long would it take for that to happen?

So, to answer the question of what comes next,

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Gita Gopinath - The Economic Aftermath of Coronavirus | The Daily Social Distancing Show

scenario

recognize

depression

aspect