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 factors could influence the depth of a recession caused by a pandemic?

What is the significance of the Federal Reserve's interest rate policy in the context of a potential recession?