El Erian on central bank and government responses to the economic impact of COVID-19

Says the 'central question; is about the effectiveness of those actions.

  • a growing number of companies will again be forced to revise downward their earnings guidance for the year or withdraw it altogether because of the exceptional uncertainties
  • Some, with limited cash cushions and maturing debt like their sovereign counterparts, will also have to worry about their refunding prospects, with mounting risk of higher defaults for the most exposed sectors
  • n light of all this, it should come as no surprise that a growing number of countries will be announcing emergency stimulus measures.

Check out the whole thing, the headline to the post is instructive, there are no glib answers

via GIPHY

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Mohamed A. El-Erian is a Bloomberg Opinion columnist

  • chief economic adviser at Allianz SE, the parent company of Pimco