A Lack of Tools to Manage the Coronavirus “Black Swan”

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A Lack of Tools to Manage the Coronavirus “Black Swan”

First week
March 2020

The Coronavirus outbreak is affecting the world’s financial markets significantly, with a 10% correction in the stock markets and the 10-year American treasury bond yield at historical lows (1.08%). The intensity and duration of the blow on the activity level is still unclear and, in addition, the global economic policy toolbox is pretty much empty. Since there is not much room for fiscal or monetary stimuli, it is key for the “Coronavirus” shock to be rapidly overcome with a sanitary solution.