Real interest rates of 0%, or even a little below, have been observed for some time now. Longer here means a decade, or the time since the financial crisis.
On the Internet in particular, we are seeing a marked increase in gloomy predictions for economic developments in the near future. Whichever scenario you think is the most likely, a few things can already be described as “set”.
The purpose of this article is to analyze the possibilities and modes of action of the measures taken by the states and the central banks.
Part 1 of the article series focused on the impact of the goods market shock on the financial sector, specifically on expected credit losses. The second part dealt with the question of how this affects private households and what impulses from the demand perspective.
The effects of the lockdown are now being felt not only in personal day-to-day life, but also in the economic numbers.
There has not been such a decline in the real economy since the oil price shock in 1973 and the financial crisis starting in 2008. Probably, the situation is without precedent even since the end of the Second World War.