It is common during recessions to observe significant slowdowns in credit flows to consumers. It is more difficult to establish how much of these declines are the consequence of a decrease in credit demand versus a tightening in supply. According to Jessica Lu, a senior research analyst at the New York Fed, Liberty Street Economics… Continue reading Consumer credit demand Versus supply during the pandemic
Tag: COVID-19
Leverage; a double-edged sword?
Leverage, the ability to borrow, is a double-edged sword. It can boost economic growth by allowing firms to invest in machinery to expand their scale of production, or by allowing people to purchase homes and cars or invest in education. During economic crises, it can play a particularly important role by providing a bridge to… Continue reading Leverage; a double-edged sword?
How Do Consumers Believe the Pandemic Will Affect the Economy and Their Households? — Liberty Street Economics
Olivier Armantier, Leo Goldman, Gizem Koşar, Jessica Lu, Rachel Pomerantz, and Wilbert van der Klaauw In this post we analyze consumer beliefs about the duration of the economic impact of the pandemic and present new evidence on their expected spending, income, debt delinquency, and employment outcomes, conditional on different scenarios for the future path of the…How Do… Continue reading How Do Consumers Believe the Pandemic Will Affect the Economy and Their Households? — Liberty Street Economics
Limited access to Internet driving inequality
COVID-19 and the Great Lockdown triggered a mass migration from analog to digital and highlighted that access to the Internet is crucial for socio-economic inclusion. High-speed Internet is key for working from home, for children’s education when they can’t attend school in person, for telemedicine, for benefiting from social support programs, and for enabling access… Continue reading Limited access to Internet driving inequality
Bank of Uganda cuts CBR to a record low of 8% amidst Coronavirus
“Bank of Uganda has today, April 6th, 2020, in the April 2020 Monetary Policy Committee (MPC) meeting reduced the Central Bank Rate (CBR) by 1 percentage point to 8 percent. The COVID-19 pandemic has led to a severe contraction in economic activity due to a combination of global supply chain disruptions, travel restrictions, measures to… Continue reading Bank of Uganda cuts CBR to a record low of 8% amidst Coronavirus
Econsimplified 
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