CERF Blog: Posts from April 2020
The Coronavirus Recession The Coronavirus is now understood to be having a stunning impact on the U.S. economy. The suspension of economic activity resulting from social distancing and shelter-in-place orders issued across the nation is simply breathtaking. One of the earliest data points to arrive was new jobless claims. Nearly 17 million people have filed… Read more
Considering both the actual stimulus packages passed by Congress and the potential fiscal and monetary responses, we conclude that the U.S. government can do little to reduce the severity and length of the Coronavirus Recession but can do much to prolong it. Monetary policy was already on a crisis footing. Policy makers failed to unwind extraordinary… Read more
As market-watchers, we are suffering from a serious case of whiplash. The week of March 9 saw five consecutive trading sessions in which the S&P 500 moved at least 4.9 percent between the opening and closing bells. Most dizzying of all, the S&P dropped 9.5 percent on Thursday, March 12 and then increased by 9.3… Read more