 "A prolonged local outbreak of Covid-19 will erode demand and pull down growth more sharply.")
A global recession looks imminent with the outbreak of coronavirus (COVID-19) global pandemic leading to a shutdown in activity across major global economies. Asset markets have seen a very sharp sell-off, increasing the risk of turning a public health crisis into a financial crisis of same proportions as 2008, by tightening financial conditions very sharply. Major global central banks led by the US Federal Reserve (US Fed) have initiated a very swift and sharp monetary policy response.
The US Fed has cut the fed funds rate by 1.5% over the first half of March and has resumed quantitative easing, akin to
