Finance chiefs vie to inoculate world economy against virus
Saudi Arabia calls for extraordinary G20 leaders' summit next week
Saudi Arabia calls for extraordinary G20 leaders' summit next week. PHOTO: AFP
LONDON:
Governments and central banks are injecting eye-popping sums and emergency policy remedies into the global economy as the coronavirus pandemic upends all normal life.
Markets have crashed as world growth faces its biggest crisis since 2008, and have so far shrugged off the stimulatory efforts as the outbreak engulfs the West.
AFP surveys responses by major economies as the coronavirus has spread from China to infect the rest of the world, enforcing national lockdowns and crippling businesses:
On Tuesday, US Treasury Secretary Steven Mnuchin said officials were drawing up a package that could surpass $1 trillion, on top of $300 billion in deferred tax payments.
The measures -- far surpassing aid during the 2008 financial crisis meltdown -- are likely to include direct cash payments to struggling families.
The package is in addition to $100 billion directed at paid sick leave and expanded unemployment benefits signed into law by President Donald Trump on Wednesday.
A bailout for US airlines could also be in the works, after Mnuchin said they face a crisis now "worse than 9/11".
The Federal Reserve has taken interest rates down to virtually zero, and massively increased cash injections into financial markets, including an additional $1.5 trillion last week and $1 trillion so far this week.
The US central bank also unveiled a new credit facility to help households and businesses stay afloat, while Donald Trump has shifted his tone after downplaying the outbreak for weeks, now appealing for bipartisan support.
Trump ordered the suspension of evictions and mortgage foreclosures for six weeks as part of the government effort to ease the pain.
Canada on Wednesday announced an aid package of Can$27 billion (US$19 billion) plus more in tax deferrals, and has also cut interest rates.
The International Monetary Fund (IMF) is making $50 billion available for poorer countries, and has appealed for a "global response" of the kind seen after the 2008 crash.
G7 leaders including Trump on Monday vowed to "do whatever it takes, using all policy tools" to safeguard growth, but offered no concerted action plan.
G20 nations rallied together to combat the 2008 crisis, but the group has been absent from the triage effort so far this time.
Saudi Arabia, which holds the G20 presidency, is calling for an extraordinary leaders' summit next week. As with all other gatherings now, it would be in "virtual" format.
After China, Europe is now the epicentre of the COVID-19 coronavirus outbreak and governments have scrambled to open the spending taps while at the same time closing their borders.
Governments and central banks are injecting eye-popping sums and emergency policy remedies into the global economy as the coronavirus pandemic upends all normal life.
Markets have crashed as world growth faces its biggest crisis since 2008, and have so far shrugged off the stimulatory efforts as the outbreak engulfs the West.
AFP surveys responses by major economies as the coronavirus has spread from China to infect the rest of the world, enforcing national lockdowns and crippling businesses:
On Tuesday, US Treasury Secretary Steven Mnuchin said officials were drawing up a package that could surpass $1 trillion, on top of $300 billion in deferred tax payments.
The measures -- far surpassing aid during the 2008 financial crisis meltdown -- are likely to include direct cash payments to struggling families.
The package is in addition to $100 billion directed at paid sick leave and expanded unemployment benefits signed into law by President Donald Trump on Wednesday.
A bailout for US airlines could also be in the works, after Mnuchin said they face a crisis now "worse than 9/11".
The Federal Reserve has taken interest rates down to virtually zero, and massively increased cash injections into financial markets, including an additional $1.5 trillion last week and $1 trillion so far this week.
The US central bank also unveiled a new credit facility to help households and businesses stay afloat, while Donald Trump has shifted his tone after downplaying the outbreak for weeks, now appealing for bipartisan support.
Trump ordered the suspension of evictions and mortgage foreclosures for six weeks as part of the government effort to ease the pain.
Canada on Wednesday announced an aid package of Can$27 billion (US$19 billion) plus more in tax deferrals, and has also cut interest rates.
The International Monetary Fund (IMF) is making $50 billion available for poorer countries, and has appealed for a "global response" of the kind seen after the 2008 crash.
G7 leaders including Trump on Monday vowed to "do whatever it takes, using all policy tools" to safeguard growth, but offered no concerted action plan.
G20 nations rallied together to combat the 2008 crisis, but the group has been absent from the triage effort so far this time.
Saudi Arabia, which holds the G20 presidency, is calling for an extraordinary leaders' summit next week. As with all other gatherings now, it would be in "virtual" format.
After China, Europe is now the epicentre of the COVID-19 coronavirus outbreak and governments have scrambled to open the spending taps while at the same time closing their borders.