TIDBITS

Checking coronavirus first step to deal with slowing economy

By IndianMandarins- 28 Feb 2020
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checking-coronavirus-first-step-to-deal-with-slowing-economy

Indian economy that has just started showing green shots is getting apprehensive to be impacted by spread of coronavirus but former RBI governor Raghuraman Rajan is of the view that the best solution for coronavirus shock is to contain its spread and worry about stimulus later.

Central bank can do very little to deal with it but more government spending would help. The priority of the government should be to convincing companies and households that the virus is under control.

Actually, coronavirus’ spread has the threat potent of pushing world economy toward its worst performance since financial crisis more than a decade ago. Economists from Bank of America Corp warned clients that they now expect 2.8% global growth this year which is weakest since 2009.

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