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While the number of job losses and company failures remains uncertain, Mr Gurría said countries would be dealing with the economic fallout "for years to come".

"Even if you don't get a worldwide recession, you're going to get either no growth or negative growth in many of the economies of the world, including some of the larger ones, and therefore you're going to get not only low growth this year, but also it's going to take longer to pick up in the in the future,"

the reason is that we don't know how much it's going to take to fix the unemployment because we don't know how many people are going to end up unemployed. We also don't know how much it's going to take to fix the hundreds of thousands of small and medium enterprises who are already suffering

Mr Gurría called on governments to rip up borrowing rules and "throw everything we got at it" to deal with the crisis.

However, he warned that bigger deficits and larger debt piles would also weigh on heavily indebted countries for years to come.

Mr Gurría said that just weeks ago, policymakers from the G20 club of rich nations believed the recovery would take a 'V' shape - with a short, sharp drop in economic activity followed swiftly by a rebound in growth."It was already then mostly wishful thinking," he said.

It's going to be more in the best of cases like a 'U' with a long trench in the bottom before it gets to the recovery period. We can avoid it looking like an 'L', if we take the right decisions today."

The S&P 500 closed Tuesday at the highest level in nearly three months. The Nasdaq has spiked 40% since March 23, fueled by the resilience of Big Tech, and is now within striking distance of all-time highs.

unprecedented stimulus from the Federal Reserve, and investors not wanting to miss out on monster returns once the economy recovers.

That means that while Main Street is still grappling with coronavirus, racial crisis and the impacts of both, Wall Street is doing just fine. Fed policy has allowed markets to decouple from economic reality.

Although the unrest was initially sparked by the killing of George Floyd, the continued broader economic discontent is an undercurrent.

that the American dream is not alive and well.

The divide between rich and poor was worsened by the Great Recession and its aftermath. The US government's response relied heavily on easy money from the Fed, rather than the kind of fiscal stimulus that can help lower-income Americans.

First, the coronavirus pandemic disproportionately hit poorer Americans, many of whom work in the hospitality and service sectors rocked by the pandemic. Nearly 40% of low-income workers lost their jobs in March alone, according to the Fed.

Mnuchin also commented on US markets, saying that they will remain open for the time being instead of being closed as they were after the terrorist attacks in September 2001."We believe in keeping the markets open," Mnuchin told reporters during the press conference. "Everyone wants them open." 

Trump's administration also spoke about other "big" plans to aid workers and the economy in the midst of the fallout. Those plans include help for industries such as airlines that have been hit hard by the coronavirus pandemic.

Under-funding this stimulus will drag the global economy down. And any appearance that corporations are getting a more fair deal than individuals will make people not want to comply. A lack of compliance will drag on the crisis.

When it falls into ruin, the entire global economy drags. We saw that happen during the financial crisis of 2008.

Congress could under-fund the US coronavirus stimulus package. If they do, they put not only the economy but the effort to fight the virus at risk.

this weekend the Senate was unable to pass aid legislation

Democrats also rejected the bill over a lack of labor protections that would only mandate corporations keep employees "to the extent possible." They want more limits on executive compensation and share buybacks, and they want more money for healthcare workers. They accuse Republicans of being cheap, and writing a deal that favors corporations over average Americans.

The only proposal that comes close to being generous enough for individuals comes from Democratic Rep. Rashida Tlaib. It would give a prepaid card with $2,000 to every American. That card would then be recharged with $1,000 monthly until one year after the end of the coronavirus crisis. This is the kind of plan that will make Americans believe the government has their back, not just the backs of big corporations.

The distrust that is bred by corruption will make it much harder to fight this virus, potentially dragging out the crisis. The vast majority of Americans already think that our lack of trust in each other and our government makes it hard to solve problems, according to Pew Research. If Americans feel like this whole aid package is a handout to big corporations — which they also distrust — they may stop listening to authorities.

Goldman Sachs estimates that the recession brought on by fighting off coronavirus will trough in April, knocking 10% off US GDP. Over time, bank analysts wrote last week, the economy should begin to grow again incrementally. How fast depends on how well Americans comply with government social-distancing mandates. Americans have to want to comply.

Small and midsize companies make up 83% of the US economy, and thousands of workers are already out of a job across the country. Means-testing initial payments to individuals — that is, restricting who gets the checks based on income — is a waste of time.

"The market is running with the assumption that while this tumult will be the deepest recession in modern-day financial history, it will also be the shortest," Innes wrote.

“When inequality increases, people with high incomes don’t benefit much from their gains – many rich people are focused on those who have even more than they do, and they never feel they have enough,”

“But people who earn little really suffer from falling further behind – they feel excluded and frustrated by not being able to keep up even with people who receive average incomes.”

examined survey data of life satisfaction levels, where people rate their life satisfaction on a scale of one to 10, and linked it to Gini coefficient numbers – a measure of inequality – from 1981 to 2020.

his study of 78 countries spanning four decades – the largest longitudinal research of its kind – punctures that myth

However, as measures to reduce inequality began to take effect, happiness slowly returned so that by 2018, life satisfaction stood at 7.8.

Any country that moved from the lowest quarter of countries in terms of inequality to the highest quarter saw a decrease in life satisfaction of about 0.4 on the 10-point scale, he found.

India’s life satisfaction declined from 6.7 in 1990 to 5.8 in 2006 as inequality rose. By 2012 it was still lower than in 1990, despite the country’s prolonged economic boom.

The US and Australia also both saw pronounced falls in life satisfaction, but those countries where inequality had fallen were generally happier, such as Poland, Peru, Mexico and Ukraine, before the Russian invasion.

“In some of the previous research, you see people saying ‘inequality isn’t that big a deal, so all efforts to address inequality are misguided because inequality is beneficial’.

“I think that’s misguided – inequality is generally damaging to people’s life satisfaction so we should pay attention to efforts to mitigate it,

Recent episodes have focused on mainstream tech stories — the crypto crash, the Netflix bubble bursting — but others go down truly weird rabbit holes, like the mysterious world of Katie Couric CBD scams on Facebook.

Begun during the early days of quarantine in March 2020, this affable show feels like eavesdropping on a conversation between two internet-savvy friends

“One Click” explores the stories of other young DNP victims, whose deaths were all caused by a combination of predatory marketing, toxic diet culture and unregulated online pharmacies. It’s upsetting but vital listening.

Delving into the deepest recesses of the dark web, “Hunting Warhead” follows a monthslong investigation by Einar Stangvik, the hacker, and Hakon Hoydal, the journalist, that ultimately led to the downfall of a local politician.

In a bizarre twist, the hack turned out to be motivated by the impending release of a movie named “The Interview,” (starring Seth Rogen and James Franco), which depicted a fictional plot to assassinate Kim Jong-un of North Korea.

This wry, richly reported podcast from the BBC World Service chronicles every twist and turn of the saga and its implications far beyond Hollywood.

Ben Brock Johnson and Amory Sivertson, told stories inspired specifically by the quixotic virtual communities Reddit creates and the everyday mysteries it spotlights. (One classic episode focuses on a Reddit thread about a man who stumbled on a huge, inexplicable pile of plates in rural Pennsylvania.)

Cybercrime has snowballed so rapidly that the world has been caught off guard; last year’s ransomware attack on a major U.S. pipeline highlighted just how vulnerable many of our institutions are, not to mention our individual data.

The hosts, Dave Bittner and Joe Carrigan, are cybersecurity experts who emphasize solutions as they unfurl tales of social engineering, phishing scams and online con artists of every stripe.

Diamond and Dybvig offered a stylized but insightful model of what banks do. They argued that there is always a tension between individuals’ desire for liquidity — ready access to funds — and the economy’s need to make long-term investments that can’t easily be converted into cash.

Banks square that circle by taking money from depositors who can withdraw their funds at will — making those deposits highly liquid — and investing most of that money in illiquid assets, such as business loans.

So banking is a productive activity that makes the economy richer by reconciling otherwise incompatible desires for liquidity and productive investment. And it normally works because only a fraction of a bank’s depositors want to withdraw their funds at any given time.

This does, however, make banks vulnerable to runs. Suppose that for some reason many depositors come to believe that many other depositors are about to cash out, and try to beat the pack by withdrawing their own funds. To meet these demands for liquidity, a bank will have to sell off its illiquid assets at fire sale prices, and doing so can drive an institution that should be solvent into bankruptcy

If that happens, people who didn’t withdraw their funds will be left with nothing. So during a panic, the rational thing to do is to panic along with everyone else.

There was, of course, a huge wave of banking panics in 1930-31. Many banks failed, and those that survived made far fewer business loans than before, holding cash instead, while many families shunned banks altogether, putting their cash in safes or under their mattresses. The result was a diversion of wealth into unproductive uses. In his 1983 paper, Bernanke offered evidence that this diversion played a large role in driving the economy into a depression and held back the subsequent recovery.

In the story told by Friedman and Anna Schwartz, the banking crisis of the early 1930s was damaging because it led to a fall in the money supply — currency plus bank deposits. Bernanke asserted that this was at most only part of the stor

a government backstop — either deposit insurance, the willingness of the central bank to lend money to troubled banks or both — can short-circuit potential crises.

Such arrangements offered a higher yield than conventional deposits. But they had no safety net, which opened the door to an old-style bank run and financial panic.

So banks need to be regulated as well as backstopped. As I said, the Diamond-Dybvig analysis had remarkably large implications for policy.

From an economic point of view, banking is any form of financial intermediation that offers people seemingly liquid assets while using their wealth to make illiquid investments.

This insight was dramatically validated in the 2008 financial crisis.

By the eve of the crisis, however, the financial system relied heavily on “shadow banking” — banklike activities that didn’t involve standard bank deposits

But providing such a backstop raises the possibility of abuse; banks may take on undue risks because they know they’ll be bailed out if things go wrong.

And the panic came. The conventionally measured money supply didn’t plunge in 2008 the way it did in the 1930s — but repo and other money-like liabilities of financial intermediaries did:

Fortunately, by then Bernanke was chair of the Federal Reserve. He understood what was going on, and the Fed stepped in on an immense scale to prop up the financial system.

a sort of meta point about the Diamond-Dybvig work: Once you’ve understood and acknowledged the possibility of self-fulfilling banking crises, you become aware that similar things can happen elsewhere.

Perhaps the most notable case in relatively recent times was the euro crisis of 2010-12. Market confidence in the economies of southern Europe collapsed, leading to huge spreads between the interest rates on, for example, Portuguese bonds and those on German bonds. The conventional wisdom at the time — especially in Germany — was that countries were being justifiably punished for taking on excessive debt

the Belgian economist Paul De Grauwe argued that what was actually happening was a self-fulfilling panic — basically a run on the bonds of countries that couldn’t provide a backstop because they no longer had their own currencies.

Sure enough, when Mario Draghi, the president of the European Central Bank at the time, finally did provide a backstop in 2012 — he said the magic words “whatever it takes,” implying that the bank would lend money to the troubled governments if necessary — the spreads collapsed and the crisis came to an end:

New financial constraints on family formation are a potential cause, as implied by another striking finding in the Journal poll — 78 percent of adults lack confidence this generation of children will enjoy a better life than they do.

Yet a recent analysis for the Aspen Economic Strategy Group by Melissa S. Kearney and Phillip B. Levine, economics professors at the University of Maryland and Wellesley College, respectively, determined that “beyond the temporary effects of the Great Recession, no recent economic or policy change is responsible for a meaningful share of the decline in the US fertility rate since 2007.”

Their study took account of such factors as the high cost of child care, student debt service and housing as well as Medicaid coverage and the wider availability of long-acting reversible contraception. Yet they had “no success finding evidence” that any of these were decisive.

Kearney and Levine speculated instead that the answers lie in the cultural zeitgeist — “shifting priorities across cohorts of young adults,”

A possibility worth considering, they suggested, is that young adults who experienced “intensive parenting” as children now balk at the heavy investment of time and resources needed to raise their own kids that way: It would clash with their career and leisure goals.

another event that year: Apple released the first iPhone, a revolutionary cultural moment if there ever was one. The ensuing smartphone-enabled social media boom — Facebook had opened membership to anyone older than 13 in 2006 — forever changed how human beings relate with one another.

We are just beginning to understand this development’s effect on mental health, education, religious observance, community cohesion — everything. Why wouldn’t it also affect people’s willingness to have children?

one indirect way new media affect childbearing rates is through “time competition effects” — essentially, hours spent watching the tube cannot be spent forming romantic partnerships.

a 2021 review of survey data on young adults and adolescents in the United States and other countries, the years between 2009 and 2018 saw a marked decline in reported sexual activity.

the authors hypothesized that people are distracted from the search for partners by “increasing use of computer games and social media.

during the late 20th century, Brazil’s fertility rates fell after women who watched soap operas depicting smaller families sought to emulate them by having fewer children themselves.

This may be an area where incentives do not influence behavior, at least not enough. Whether the cultural shift to lower birthrates occurs on an accelerated basis, as in the United States after 2007, or gradually, as it did in Japan, it appears permanent — “sticky,” as policy wonks say.