Can Coronavirus Response Open the Door to Modern Monetary Theory?

The video discusses the effectiveness of Fed cuts and the potential need for fiscal policies, especially in Europe where low rates may not stimulate lending. It explores possible fiscal responses, including tax cuts and non-traditional policies, amid global uncertainty. The impact of coronavirus on markets and investor sentiment is also highlighted, with expectations of worsening news before improvement.

What are the potential effects of lower interest rates on lending activity in Europe?

What are the implications of potential tax cuts or deferrals mentioned in the discussion?

How might fiscal policy respond to the current economic situation according to the speaker?

What role does investor sentiment play in the economic outlook discussed?

What challenges are anticipated in the near term regarding the coronavirus situation?