Central banks have met their match. They cannot counter the economic havoc caused to global supply chains from the coronavirus. Nor can tax cuts or a blast of government spending plug the gap when crumbling confidence and emergency anti-virus measures are blocking the transmission channels. We are in an unprecedented global situation more akin to the outbreak of war than any episode in collective economic memory. “Everyone believes it’s going to be a V-shaped recession, but people don’t know what they are talking about. They prefer to believe in miracles,” said Nouriel Roubini, the Dr Doom of the 2008 saga. “This crisis is a supply shock that you can’t fight with monetary or fiscal policy.” Olivier Blanchard, the International… We’re glad you’re enjoying The Telegraph […]