We start the week with an in-depth discussion with a global economist.
Governments around the world are rushing to protect their economies from a crushing recession as the coronavirus outbreak continues to spiral across the world, paralysing all sectors and wiping out millions of jobs.
We're seeing hundreds of billions of euros and two trillion dollar-plans being injected, interest rates slashed and subsidies rolled out to cushion the blow. But is this enough?
And what about countries that can't afford huge stimuls plans?
Today we're joined by Dr. Kaushik Basu, Professor of Economics at Cornell University, who served as the Chief Economist of the World Bank from 2012 to 2016.
We're seeing many countries taking measures like rate cuts and massive stimulus plans, but in a situation where the world's largest economies are going into lockdown, financial markets are still volatile. Why are the usual textbook approaches failing to provide reassurance and what are they lacking?
Many are hoping for a V-shaped recovery to the economy. Maybe the numbers will add up eventually. But what are the chances that jobs won't recover as quickly
We're seeing national borders close, some finger pointing between world leaders and a general lack of cross-border coordination when it comes to handling COVID-19. Even in the EU, President of the European Central Bank Christine Lagarde announced a huge bond-buying programme to stimulate the regional economy which gave rise to concern that old feuds from the 2008 financial crash may resurface. What are the risks of politics hindering global cooperation amid this pandemic?
Take developing countries like Botswana where government revenue relies heavily on the global demand for commodity exports and tourism, or labour-intensive economies like Bangladesh how vulnerable are their economies?
The World Bank committed $14 bil. to helping developing countries combat COVID-19. But is this enough? What should be done on a global scale to limit impact on developing economies and their people's livelihoods?
That's all we have time for today but thank you Dr. Kaushik Basu, for joining us from Mumbai.