Bond Yields May Stay Low For Longer Period of Time, Deutsche Bank Says

The video discusses the market's response to the health crisis, highlighting the uncertainty in exit strategies and the impact on risk sentiment. It explores the challenges of high unemployment rates and their effect on bond yields, emphasizing the role of monetary and fiscal policies. The discussion also covers the necessity of government spending to stimulate economic recovery, considering the damage to demand and supply functions. The video concludes with an analysis of stimulus packages and their potential effectiveness.

What challenges do policymakers face in addressing the negative output gap caused by the health crisis?

What are the potential long-term effects of the current economic crisis on demand and supply functions?

How does government spending relate to the recovery from the economic impact of the health crisis?