- Amid the coronavirus pandemic, lockdowns and aggressive social-distancing measures are required to save lives and countries across Latin America and the Caribbean have put them in place.
- As a result of the changing macroeconomic conditions, financing costs for emerging markets have risen and commodity prices have fallen.
- There will be large drops in GDP, but this is not a normal recession, so typical countercyclical demand management, both fiscal and monetary, is likely inconducive.
- Policies should be aimed to provide relief, maintain economic stability and the core of the economy intact for the recovery.
RELATED LINKS:
https://flagships.iadb.org/en/MacroReport2020/Policies-to-Fight-the-Pandemic
