02 Apr The coronavirus pandemic and the economy – a Q&A from an investment perspective
Key Points:
- Significant government support is essential to enable parts of the economy to successfully hibernate.
- This will be financed by borrowing and is affordable given Australia’s relatively low public debt and low borrowing rates.
- Central bank support to keep financial markets functioning properly is also essential and quantitative easing is part of this.
- We are more likely to see a U-shaped recovery than a V or L.