Economic measures: what countries are doing to face the crisis

Tuesday (17) was not so tense in the financial markets.

Although the economic effects of the coronavirus pandemic remain uncertain and tense, measures are being taken.

US Measures

• In the US, Donald Trump's administration announced that it plans to send checks to citizens in the next two weeks to alleviate the economic consequences of the pandemic.
• The Fed announced it will resume buying short-term corporate debt to ease credit markets.
• US Treasury Secretary Steven Mnuchin said the US intends to keep markets open during the crisis, although shorter operating hours may be necessary at some point.
• Trump also said on Tuesday that he wants a stimulus package of US$1 trillion.

Measures from other countries

• Türkiye's central bank brought forward and cut its main interest rate by 1 percentage point.
• The Philippines was the first country to announce the closure of its stock exchange for an indefinite period, with authorities citing risks to the safety of traders.
• France, Italy, and Spain have restricted trading in stock markets, banning short selling to protect some of Europe's largest companies. In these operations, traders borrow a company's shares with the intention of selling them, hoping to buy them back at a lower price and pocket the difference.
• In Germany, economic sentiment among German investors has fallen to levels last seen at the start of the global financial crisis in 2008, according to a survey by the ZEW Institute. Analysts project that the economy will shrink in the first quarter, with a contraction also very likely in the second quarter.
• The French and Italian governments have not ruled out nationalizing companies hit by the coronavirus pandemic.
• Goldman Sachs now forecasts that China's GDP will grow by 3% in 2020, compared to its previous projection of a 5.5% increase.
• France has announced that it will inject 45 billion euros into the country's economy, given the expectation that the economy could fall by 1% in 2020.
• The Bank of Japan conducted its first 84-day dollar financing operation after central banks agreed this week to offer three-month dollar credit to ease funding crunches.
• Spain has announced a €200 billion aid package to protect jobs and reduce the impact of the epidemic on the country's economy.

For more information on economics, access.