Covid-19: Assessing the impact of doing 'whatever it takes'

State stimulus packages unpicked

Global policymakers adopted a "do whatever it takes" attitude to the Covid-19 crisis encompassing aggressive monetary and fiscal easing and generous loan-guarantee programmes.

Fiscal policymakers have seemingly put their concerns about budget deficits on hold when it comes to addressing the most significant economic crisis in 75 years or more. Although the global stimuli that have been enacted in recent months are extraordinary in size and scope, it does not appear that policymakers are finished for the year. Financial markets have seemingly followed a predictable script in responding to the unfolding news of the Covid-19 crisis and attendant stimulus. Earlier in the year, return-seeking assets - supported by optimistic earnings expectations, a relativel...