Speech

Addressing the Economic Effects of the COVID-19 Pandemic

Abstract: Today, we’re witnessing the pandemic’s stark effects on public health. Meanwhile, the necessary response – social distancing – has stilled our strong economy, disrupting countless lives and livelihoods. It’s also been distorting the credit and liquidity flows that underpin our economy, threatening the greater pain of a full-blown financial crisis. Traditional economic models are challenged by this unique situation. To me, the most important factors are how well we avoid financial spillovers, and how effective the fiscal stimulus is, as well as the progression of COVID-19 infections. These will all impact the speed of the economic recovery. That is not a fatalistic assessment. On the contrary, it should galvanize us.

Keywords: COVID-19; credit; liquidity; employment; interest rates; money market funds;

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Speech

Publication Date: 2020-04-01