What to Watch in the Economy This Week

The video discusses the economic impact of the coronavirus, highlighting how it has affected housing and other economic indicators. It examines the global monetary policy response, including rate cuts by various central banks. The video also analyzes the difference between demand and supply shocks, emphasizing the limitations of monetary policy in addressing supply shocks.

What economic indicators are mentioned as being influenced by the Fed rate cuts?

• Consumer confidence index

• Stock market indices

• Unemployment rates

• Housing numbers and durable goods orders

What unusual measure is China taking in response to the coronavirus?

• Providing tax cuts

• Implementing a nationwide lockdown

• Sterilizing cash injections

• Increasing interest rates

Which countries are mentioned as considering rate cuts in response to the coronavirus?

• Brazil and Argentina

• Australia, New Zealand, Canada, and the United Kingdom

• Russia and China

• India and South Africa

What type of economic shock is the coronavirus primarily considered to be in the medium to long term?

• Fiscal shock

• Monetary shock

• Supply shock

• Demand shock

Why might rate cuts not effectively address the economic issues caused by the coronavirus?

• They only affect short-term interest rates

• They cannot address supply shocks

• They are too slow to implement

• They increase inflation