5-Step Policy Response Plan for COVID-19

The COVID-19 pandemic has created a global health crisis. When combined with an oil producer price war, it has led to a global economic recession, a sudden shock in global capital markets, credit stress in a number of jurisdictions, signs of a dollar shortage, and unprecedented outflows from Emerging Markets.

The Institute of International Finance (IIF), which represents more than 450 financial institutions from approximately 70 countries,  has worked with the private and official sectors for almost forty years to analyze and consider policy approaches that can address economic and financial crises – whatever the trigger.  While each crisis is different, there are some hardy perennials; perhaps most importantly, we live in an integrated global system, and thus a globally integrated approach will be most effective.  For instance, one of the most forceful parts of the global response to the Global Financial Crisis (GFC) in 2008 was the G7 coming together and releasing a short, blunt, coordinated and action-oriented statement – backed by actual policies.