Understanding the Current Economic Crash

April 23, 2020

Dr. Rasmus stakes out his explanation of the current deep crash of the real economy. Why the economy was already headed for recession: a review of 2019 slowing economy. The role of the health crisis as a precipitator and accelerator of an already slowing economy. The various programs by Congress to provide a fiscal spending mitigation of the contraction are described. Why the emerging recession will not result in a V-shape recovery but rather a W-shape scenario, with short rebound followed by a further slowing of the economy and subsequent short, brief rebounds and weakening again—all typical of Great Recession trajectories. An extended Q&A follows.