PanamaTimes

Saturday, Oct 24, 2026

IMF calls for bold action on virus

IMF calls for bold action on virus

The International Monetary Fund on Monday called for a coordinated international response to blunt the economic impact of the coronavirus outbreak, while a former chief economist at the World Bank called for the urgent establishment of a global task force to deal with the health crisis.
"Considering the epidemic's broad reach across many countries, the extensive cross-border economic linkages, as well as the large confidence effects impacting economic activity and financial and commodity markets, the argument for a coordinated, international response is clear," IMF chief economist Gita Gopinath said Monday.

The widening coronavirus epidemic has killed at least 3,800 people worldwide.

It has caused both supply and demand shocks, rattled investors and pummeled stock markets, and as seen in recent days, borrowing costs can rise and financial conditions tighten, Gopinath said in a blog post.

"And when these shocks are synchronized across many countries, the effects can be further amplified through international trade and financial linkages, dampening global activity and pushing commodity prices down," she said.

Kristalina Georgieva, chief of the 189-member global lender, last week said the coronavirus outbreak had affected more than a third of the IMF's membership directly. It predicted the global economic growth to be below last year's level of 2.9 percent.

Considering the "particularly acute shocks" in specific sectors, policymakers will need to implement substantial targeted fiscal, monetary and financial market measures to help affected households and businesses, Gopinath noted.

Such measures include cash transfers, wage subsidies, tax relief and unemployment insurance, as well as policy rate cuts by central banks.

China, for example, has temporarily waived social security contributions for businesses, she said in the post.

US President Donald Trump said Monday that his administration will ask Congress to pass payroll tax relief and other quick measures to help reduce the economic impact of a spreading coronavirus outbreak as the number of confirmed cases in the United States hit 700.

"We'll be discussing a possible payroll tax cut or relief, substantial relief, very substantial relief, that's a big number," Trump said at a White House coronavirus task force news conference.

But while several countries have taken steps to cushion the blow to their economies and boost confidence, there has been "little visible coordination" among policymakers like there was at the height of the 2008 global financial crisis, Agence France-Presse reported on Monday.

More than rate cuts, the coronavirus demands a coordinated global policy response, argued Kaushik Basu, former chief Economist of the World Bank.

"The number of daily new cases of the COVID-19 coronavirus are finally declining in China. But the number is increasing in the rest of the world, from South Korea to Iran to Italy," he wrote in an op-ed Sunday.

"However the epidemic unfolds — even if it is soon brought under control globally — it is likely to do much more economic damage than policy makers seem to realize," the professor of economics at Cornell University wrote.

Already, the US Federal Reserve has cut interest rates by half a percentage point – its largest single cut in more than a decade, but the move, without other supporting policies, seemed only to confuse stock markets further; just minutes after the cut, stocks continued their downward slide, Basu noted.

Basu proposed that a multilateral organization such as the World Bank or the IMF should urgently establish a task force comprising 20 economists with diverse specialties, as well as experts in health and geopolitics, to analyze and coordinate actions against the crisis.

The group would need to submit its first report – with a list of initial actions to be taken by governments and, possibly, responsible private corporations – within a month, and provide updates on a monthly basis until effective policies take root, Basu said, adding that it could be disbanded in perhaps a year.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Trump’s Top General Seeks an Exit Strategy From Iran War, Report Says
Brock Lesnar Retires From Wrestling, Closing a Career of Rare Athletic Range and Lasting Controversy
Trump-Era Policy Shifts Test the Boundaries of U.S. Institutions
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Breaking With the Past: One of the World’s Smallest Countries Changes Its Name
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Cuba’s Grid Fails Again as Fuel Crisis Deepens
Nazca Lines Flight Crash Kills Thirteen as Peru Suspends Aerodiana
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Spain Defeats Argentina in Extra Time to Win Second World Cup
Venezuela’s Earthquake Devastation Turns U.S. Investment Opportunity Into a Thirty-Seven Billion Dollar Reconstruction Challenge
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The AI Race Enters Its Infrastructure Era
Colombia Influencer Dies After Cosmetic Procedure at Unlicensed Bogota Salon
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
On the Island That Did Not Yield to Trump, There Is No Electricity, and 10 Million Live in Darkness
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
×