Disaster. Monetary policy works through emulating aggregate demand and that is important now. Ultimately, there is a job to replace lost income. Our congress stepped in and there has not been a faster or stronger response from congress to an economic emergency since the great depression. The cares act and other laws have been passed to more than offset lost income in the aggregate. There will be people for whom that is not true. You see high levels of savings on the Balance Sheets of households. Not experienced the downward cases we were worried about of mass insolvencies of businesses so far. So far, so good, i would say. There are no full recoveries without confidence. Do, which ipart to think we have done. The path forward will be challenging for a number of reasons, and i am sure we will get into some of them. Congresso do more and might need to do more with fiscal policy. The particulars of that are up to congress and not up to us. It is likely more will need to be done in time. O
You the same question a you or d an l because that will really dictate what kind of policy is necessary to get out of this lump go ahead ben. Well i think policy has a lot lou with what type of shape it is so right now were in a flat line and its because we have shutdown orders that are essentially telling people not produce so the question is when shutdown orders are lifted what the normal Economic Activity and recovery look like and i dont think it looks like a b. Because that would imply that were going back to the economic world we all lived in at the start of the year but the virus is still going to be with us so opening back up means taking account of that and weighing that in our economic transactions so restaurants working at half capacity or a 3rd capacity whatever customer is an entrepreneurs the state airlines that much less than capacity all of these things dont abide by bouncing back to where we were no i think whats important is that we dont have dumb Government Policies
Waters. I got those are your headlines of one of those stories you can go to r t dot com for more information right now stay tuned for more great programming this is our international. Hello and welcome to cross talk were all Things Considered im Peter Lavelle with good reason Public Discourse is focused on addressing and finally containing the code 19 pandemic the focus is on devastated economies were in a recession will it morph into a depression will the recovery be you. Know. Crosstalk economic recovery im joined by my guest Benjamin Kyle in lubbock he is the director of the Free Market Institute a professor of economics at Texas Tech University as well as the senior fellow with the independent institute and in los angeles we cross to he is an independent economic and geo political analyst as well as a former commodities trader all right gentlemen crossed up rules in effect that means you can jump in anytime you want and i was appreciating lets go to los angeles 1st year time i sai
Economic recovery im joined by my guest Benjamin Cowen lubbock he is the director of the Free Market Institute professor of economics at Texas Tech University as well as a senior fellow with the independent institute and in los angeles we cross to he is an independent economic and geopolitical analyst as well as a former commodities trader all right gentlemen crossed up rules in effect that means you can jump in anytime you want and i was appreciating lets go to los angeles 1st here i said in my introduction i guess probably the most important question there is as we come out of this pandemic and its all going to be about the economy and its everything were going to think about for the next few months if not years is about recovery so infer a very simple question will it be a v. A you or an l go here well weve been in an l. Shaped depression since the 2008 financial cry. Basis i mean only that true Economic Data on unemployment inflation g. D. P. And the like have been warped or hidden
Looks like a of b. Because that wouldnt buy that were going back to the economic world we all lived in at the start of the year but the virus is still going to be with us so opening back up means taking account of that and weighing that in our economic transactions so restaurants working at half capacity or 3rd capacity whatever customers and entrepreneurs do you say airlines that much less than capacity all of these things going to abide by bouncing back to where we were now i think whats important is that we dont have dumb Government Policies preventing Entrepreneurial Solutions that let us make our recovery as quick as we can and not stick us in how so its somewhere more like a you somewhere in between but thats really got to be for the market process to sort out you know the game it seemed that cycle about the market here you know plight we have now as we speak and i think it was as of today 26000000 people over the past 5 weeks have gone on unemployment and the this is massive i m