Markus Brunnermeier: Throwing a Covid-19 Liquidity Lifeline for SMEs
This episode is part of our ongoing Covid-19 special coverage, which consists of real-time updated interviews, op-eds, & “punchlines” as the situation evolves…
Markus Brunnermeier is the Edwards S. Sanford Professor of Economics and Director of the Bendheim Center for Finance at Princeton University. In this episode, Prof. Brunnermeier explains the nature of the Covid-19 economic shock and addresses a series of important economic policy questions:
How the initial economic shock could end up posing a threat to financial stability
The details of the $2tr stimulus package and why the current solutions for funding small & medium-sized businesses are still insufficient
His “liquidity lifeline” proposal for the EU and “evergreening funding for SMEs” proposal for the US
How to bring the economy back to life in the long run
Why the lack of ICU units per capita in the US forces the country to shut down the economy in order to buy more time for further responses
The lack of social solidarity in the US compared to Germany and how it’s posing difficulties for effective solutions
His optimism for innovations from the private sector and praise for more people turning to experts rather than pundits for accurate information
… and other topical political & economic debates related to the crisis
One of the most prominent economists of our time, Prof. Brunnermeier focuses his research on international financial markets and the macro economy with special emphasis on bubbles, liquidity, financial crises and monetary policy. He promoted the concepts of liquidity spirals, CoVaR as co-risk measure, the paradox of prudence, and the I Theory of Money. He is or was a member of several advisory groups, including to the IMF, the Federal Reserve Bank of New York, the European Systemic Risk Board, the German Bundesbank and the U.S. Congressional Budget Office.
If you’d like to learn more about Prof. Brunnermeier’s research, please visit https://scholar.princeton.edu/markus/home.
Prof. Markus Brunnermeier
Prof. Brunnermeier is hosting a series of important webinars dedicated to cover the economic, political, and epidemiological aspects of the Covid-19 crisis. Past and upcoming guests include Nobel Laureates Paul Romer and Angus Deaton, former IMF Chief Economist Olivier Blanchard, Deutsche Bank Chief Economist Torsten Slok, founder and director of the Center for Disease Dynamics, Economics & Policy (CDDEP) Ramanan Laxminarayan, etc. Please visit https://bcf.princeton.edu/event-directory/covid19/ to watch his interviews and presentations.