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IMFBlog Updates: A Post-Coronavirus Recovery in Asia

A Post-Coronavirus Recovery in Asia—Extending a “Whatever it Takes” Lifeline to Small Businesses by Kenneth Kang and Changyong Rhee


" Many emerging markets in Asia have limited fiscal space to fill in this gap using credit guarantees or lending but are under immense pressure to do whatever it takes to prevent large layoffs and defaults. Some are considering commercial banks or even the central bank directly financing the extra fiscal spending (i.e. direct monetization). "


" Given the exceptional measures needed in this crisis, emerging markets in Asia could borrow a page from this playbook to do whatever it takes to rescue their economies. "

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