John Redwood: The week the world changed

How Covid-19 upended monetary policy

This week, the western world changed dramatically. The USA, Germany, France, UK and many other advanced economies saw the imposition of new strict controls or tough guidance to reduce people's contact with each other.

Most of the measures target hotels, restaurants, travel, sporting and cultural events, theatres, cinemas, gyms and clubs. Airlines, taxis and car hire are particularly vulnerable within the travel industry. The aim is to stop or discourage people enjoying any of the usual entertainments and tourism as these are possible means by which the virus spreads more rapidly to more people. Update: ASI suspends property funds; 'almost certain' all will follow This will cause a sharp downturn in activity. In a normal recession the downturn builds more gradually. The most exposed companies off...