The Economy Is Grinding to a Halt. Here’s What We Need From the Feds
It’s inevitable: To contain the spread of the coronavirus pandemic and save thousands of lives, the economy is going to take a hit. As shutdowns disrupt businesses large and small, we may even fall into recession.
“As banks begin to suspect that customers will be unable to repay loans on a timely basis this could cause banks to raise borrowing costs and to tighter financial conditions which could cause a spiral of slower growth,” wrote Michael Klein and Miriam Wasserman in an analysis by EconoFact, a project of the Edward R. Murrow Center for a Digital World at the Fletcher School.