Time to rethink pandemic bailoutsAs the pandemic stretches on and recovery seems further, world governments, which splurged to blunt the economic impact are now coming up with plans that are more targeted and tactical in their approach.
Until June, governments made spending plans for about $10 trillion to boost economies, according to International Monetary Fund estimates.
Central banks raised it further with rate cuts, bond purchases and other credit programmes. IMF now estimates this is about $2 trillion short of what’s needed, with global output expected to shrink 4.9% this year.
It will issue updated forecasts ahead of its 12-18 October meetings. At the start, the thrust of policy was to get money out fast, with few strings attached;.