Criticism of the Prime Minister and his government run a says it must be scary living in the us to be so bad for humanity in policy development she then goes on to city agree we have huge inequality too norma says the print media is dying but its mostly their own fault by some lies thats what they print i have a newspaper for years but i get all untruthfully on social media gemma says newspapers have brought on their own demise by reporting biased news finally scott says there is no way to run a pandemic government just save lives and live right. The lockdown of the better part of the World Economy is an event without precedent in World History never before has a 1 august session been engineered as a deliberate act of policy to tackle a Health Crisis vicki price is the chief Economic Advisor of the center for economic and Business Research shes also a former head of the Economic Service and the United Kingdom who better to assess the prospects for economic recovery think the price now joins me from london. Vicky pryce one of the 1st quarter economic figures tell us about the impact of the. World economy basically we are seeing a contraction of spread across the world and be one of the interesting issues is 1st of all how much. You do contractionary and his activity to shop because were beginning to feel someone who knows outcomes just now in the western world anyway the question then who say this was. Not an impact that would have been whether the recovery that were all hoping will happen at some point his class as the International Monetary fund house or whether were going to have what it was chucked it period during which he tried to get out of this recession which is the largest theyve seen released since the great crash in the early part of the 20th century and whether theyre for that is going to leave scars for quite some time and the economy simply arent going to recover say going to come or anything what we lose to see is all for now when your sense financial crisis so that its telling us were in recession basically thats what they do suggest. The problem is the Major Economies are been flowing but could only be described as economic poets of the recession at the crisis what policies havent passed through the morse thus far i think all governments have in dont prepare it to engage in quota of borrowing in order to sustain the economy so fiscal rules have been abandoned i think the governments have learned from the financial crisis is exactly what was needed then but it was suddenly easier because we had one problem to deal with the Banking System trying to avoid the credit crunch from causing huge financial instability that was more easily handle that this is quite unprecedented because we have it both ways that were not. Trying to expand mt which is the who trying to do then what were trying to do now is sustain the population and this is this why were pushing demand and supply downward sentiment but this is quite unprecedented for Central Banks to be buying us on the scale but would you say its justified given the unprecedented nature of the economic crisis are completely about illusions to fight who must remember that the European Central bank has been doing this for a long period of time cos its not new for them and since 10 to 15 now been quite aggressively weve now abandoned concerns about how much we do the u. K. For example has been able to sell its bonds and finance. The deficit is going to have this year estimated to Something Like 300000000000 pounds mainly because the central bank his feeling behind it printing money you could call it promising to buy all those bonds that others will acquire back from them so they know that theres someone there to make the market for them that the risk is a small part and therefore the bank of it in his neighbor with the support so the treasury rather has been able to support him the bank of england to go out to the markets and issuance of bonds very low rates shipping then the news money of it to Fund Guarantee course a lot of the activities that are going on my mountain markets to sustain the economy going to do without that whether you bank of england bank of japan received the list said that also has been quite supportive in china and elsewhere. Think we have seen much much faster here and Racial Conditions in the us. Thus far some countries are been substantially more successful and containing the virus than others south korea taiwan in europe gleasons and germany will these countries be insulated from the economic effects or will they be caught up in a general dont term in the World Economy and world trade. To worry thing about the World Economy so it was already slowing down going down very significantly before the crisis hit and working it seems that the trade skews between china and the us it is to cuba had already weve used chinese growth question sam shilling and ready to use grants and loads of other parts of the world japan was an export of the whole china in the 1st china was a growing particularly germany wasnt us for 2 months a china scene in europe in fact is a 2 quarters of contraction some of the commons there but included actually german which also included the u. K. Because were also going to hear by that slowdown in trade and than being a worry in any case one of the reasons why Monetary Policy has been relaxed and ready. For this crisis has been the calls on the Central Banks are trying to sustain growth in those regions and practiced or still responsible and we saw the z. B. Get into the market again quite aggressively back you remember and playing a Critical Role last year it is a very unusual situation so if there isnt a resumption of trade soon. Extend that that sustains the World Economy as weve seen a high importantly this then countries that have done quite well in terms of containing the fires are still going to be affected by the slowdown in trade and were hearing who else resumption on all the possible resumption of trade his suit is between the u. S. And china which of course is going to be affecting markets for them somehow. There are some economists and indeed some political leaders been putting forward hopes that there might be a substantial economic recovery in the back end of this year and into 2021 is there any real prospect of a v. Shaped recovery as its called are we more likely in for a period of prolonged recession. We dont know thats interesting thing if you look at china and the data has come out of it then went into quite a bit line in the 1st quarter so what we saw is in quite a different induction production particular if you look at whats been happening recently the april data are after 2 months of very serious decline so increase again so china is moving out of it is no reason why other countries if there is a lockdown shouldnt i thought the thing is for i thing in mind that when ruth who know whats going on right now what happens in the mansion crisis back in 2008009 the monster well went into recession very quickly i didnt last very long it was a v. Shaped well but at the time thats we had the then the new World Oil Prices were still quite high Commodity Prices were high actually doing reasonably well i mean its just as recovering that someones country is went into recession the concern prices fell one might as well so there was a bit of a balance in other words if this time seems to be the case that the developing world is also going to see a fall this year and getting out of that for them might actually be much more difficult than was the case back in the form of the financial crisis because many have very high debts now most of congress and much higher debts 200. 00 due to the beginning of the financial crisis and of course they will have difficulty credit worthiness left so theyll be deep thoughts right lots of debt is not going to be a nice experience for the World Economy for a while so yeah i think the shape is. In your recent book women versus capitalism if you put forward the view that women still face substantial obstacles in terms of business and the economy and developing careers and going into positions of the. Influence do you anticipate that women might also get the heart of the economic. Of the covert 19 crisis look at the causes linked to this showdown in the economy the International Monetary fund has come to that are in times of recession slowdown women suffer the most and of course the tend to be the poorest members of society because there is a big wage gap and they do the types of jobs which are the margins of society quite a lot for their work. Not paid and theyre the ones for the most like you hong kong today so yes i worry on whats happening in the developed world this is quite long the pressures for gender equality seem to. Have eased a little bit right now and probably will not be at the forefront of any becoming the takes place weve seen here in the u. K. For example in the the requirement for the firms to bumstead pay if you so the gaps that the have in their organizations in their women has been delayed and that causes a hurry to be going backwards and forwards and how long we take them back you can hear again in the position women has been lacking so the hunt take place and will be so down because of this and those are the main concerns and if you look at data it does suggest that women and young are the most of them in this process. Join us off to the break we continue our discussion with a columnist think the price. Seems wrong. To me. Yet to. Come. And in. The trail. Worlds apart we choose to look for common ground. Patrons are consuming anything the solution according to the policymakers would be to make the consumers bigger inject more helium or oxygen in and improve the situation theyre not taking into consideration theyre dead. They cant consume just like the money velocity number shows us for now couple of decades just. Recently the money pretty much. Welcome but im discussing with vicky pryce the former head of the government Economic Service and United Kingdom about the efficacy of the financial policies being pursued by governments right in the world will do so for the v. Shaped recovery or are we more set. For a long recession. Record price. For the bills have to be settled some point after the crisis is over the policy makers wrote the world will be looking for different means of of raising taxation is to close some of the substantial 1st call gobs of the Early Opportunities in terms of the economics effect of the crisis for example we knew them 1st and carbon taxes given the substantial fall in the resource price that may offer themselves us more attractive policy options are normal for economic viewpoint its a carbon tax that we need is not just because of the cause and now theres all sorts of behaviors that many kids much more likely that will get to a solution that will lose less force and you know you then move into the area Carbon Capture and storage to alternative fuels you can get out of boston piers that can be used to not im certain way by no means the entity who owns just on gas presence this is huge it was to say to construct an industrial policy in various countries that is who you are in the future. What we have before anything i dont think you need some more time changed and so have been sent to many countries by no are certain is the case in the u. K. So see those this unfortunately also doesnt worry about evil tends to get cooler than month to get what. Fronts are the same theme what changes would you expect to see in the economies once 1st crisis is finally over who wanted to see what would be what happens the way we work. There is now serious discussion about whether one means its commercial property thats out there and one. Saddest thing of this to mean for all our pensions given a lot of money is invested in property certainly cant remain advanced nations to. Believe me there were more from home what is very much see is a peanut that in some countries germany for example is thinking on. Legislating that can as of right work from home for the want maybe globalization a little go backwards because we need to be close to supply chains maybe theres a lot more on showing all the saying is that our now so the possum can go home so he can make it work most of their own state much to get well. Because so Many Companies are going to be requiring systems they already are and then find that it was then rare to have them in the got the thoughts of course is the boom and i think the Banking System will have different to. Begin how quite new to the getting any of the loans back even though the danton been stated in places and then consumer might just change the habits. I think is the one to gods needs or they might be much more careful how they spend that money in the future do they worry it will play very important no confidence because chances are great say from jason to vicky pryce from london thank you very much indeed for for joining us on the show you. Now in the aftermath of this extraordinary economic crisis which has followed the Global Pandemic well new economic thinking a mess of as countries come to terms with the fool economic ramifications of covert 19 a time to jobs care of a leading economic thinker and scotland a former s. N. P. Member of Parliament Just kind of and joins me from edinburgh now the bigger economy is all economies of well go to the big guns in order to confront the economic consequences of a lot though in these unprecedented positions of our and in just world recession just as a deliberate act of policy isnt this exactly the the moment where Central Banks are justified in a substantial asset purchases quantity of easing of printing money isnt this the exactly the situation where the unprecedented action is justified i think youre right miss me was how quickly i mean as a matter of microseconds the core of the big Central Banks went back to cranking up the money machine trying to pump more cash into the economy the trouble is they can really use that mechanism over the last decade to cut Interest Rates down to rock bottom so the more money is being printed now its essentially going to replacing lost taxes during the lot and its not actually adding extra demand to the Global Economy in a way that would expand investment and expand empirics which is why i think ultimately the solution if you want to get the Global Economy back on track and growth back up to trend is going to be more. Secure injection not not monetary cost you know essentially keeping Interest Rates down which is what Monetary Policy has been used for to date i think comes you have to use them. Theyre printing from the Central Banks and companies are actually into the economy directly into investment directly into purchases Interest Rates already at rock bottom so what we need to do is to put money directly into spending and youre seeing some governments begin to do that Chinese Government began to do that even trumps government is leading into that in america not so much yet in europe. But coming to the u. K. Economics the snow well criticism has been mounting against the Prime Ministers handling of the crisis the chancellor has been getting rave reviews the new chancellor of the exchequer seems to be the darling of much of the media commentary is that praise justified or more that should be being done by the u. K. Exchequer and actually the bank of him of just being given the chance or cash directly so hes going to shortage of spending per moment and if you use sort of spending power then you could look good i think the real test for the chancellor is one hand out of a look. Could well be that the chancellor thinks he can resort to an all fashion gambit which is to boost inflation and of course if inflation goes up in the medium term then they value of the debts that the government has contract it will control will fall in real terms so i think the chance of might find it hard to raise taxes and freeze Public Sector pay if the immediate aftermath of the of the look but i think chair he might look can lay towards a little bit of inflation tell the economy along one side of new and different thinking the usage of calvin emerging from this crisis i cant imagine theres the political will to go back to another bowl of a sterile city pay all the substantial sums of money the Government Support across the world. So its going to have to be in other ways of funding government from no honors and you and you sort of thing series called monetary series and essentially it says that its actually quite a good thing for governments to port because when they borrow they are issuing government bottoms and those bonds are trying to wilkes i just to be very simple cant simplify the budget you know where does your pension come from. Yeah youre youre you have to save what can you see even well you cant you know your pension fund buys government loans government borrowing is actually quite a good thing because the local term underpins Peoples Pensions so there might well be a rethink across the world about borrowing