Global Recession Likely If Virus Becomes a Pandemic: Moody’s Analytics

The transcript discusses the increased risk of a global pandemic and its potential to cause a global recession. Mark Zandi from Moody's Analytics highlights the economic disruptions already visible in China and the likelihood of similar impacts worldwide. The conversation covers the expected appearance of these effects in economic data, the responses from global policymakers, and the challenges faced by governments due to low interest rates and high deficits. The importance of government transparency and market trust is emphasized, along with concerns about the depth of a potential recession given limited policy tools.

What is the predicted economic outcome if the virus becomes a global pandemic?

• Global economic growth

• Global recession

• Stable economy

• Economic boom

What is expected to show the impact of the pandemic in the near future?

• Political speeches

• Economic data

• Stock market trends

• Social media posts

What is a major concern regarding government actions during the pandemic?

• Lack of transparency

• Excessive spending

• Increased transparency

• Lack of new policies

What is a limitation for central banks in responding to a recession?

• High interest rates

• Low interest rates

• Strong fiscal policies

• Excessive liquidity

What historical action does the Federal Reserve typically take during a recession?

• Raise taxes

• Increase interest rates by 5 percentage points

• Lower interest rates by 5 percentage points

• Maintain interest rates