Governments should deploy "substantial" stimulus and international coordination to counteract the economic impact of the spreading coronavirus epidemic, the International Monetary Fund's chief economist said on Monday.
Given the "acute shocks" caused to economies, consumers and businesses, Gita Gopinath said "policymakers will need to implement substantial targeted fiscal, monetary, and financial market measures to help affected households and businesses."
That includes "cash transfers, wage subsidies and tax relief," as well as interest rate cuts and financial market support by central banks.
Given the international economic linkages, "the argument for a coordinated, international response is clear," she said.
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