The combined effort dwarfs the response to the 2008 financial crisis, which smashed records at the time. But economists worry even the Herculean efforts undertaken so far won’t be sufficient should the crisis extend beyond June.
“The [$2 trillion US] stimulus package is likely the bare minimum needed to offset the current drag from the outbreak,” Bank of America economist Joseph Song told clients Thursday. “The economy will likely need close $3 [trillion] in fiscal stimulus, if not more.”
The last time global economic growth was this depressed during peacetime was in 1938, according to Chetan Ahya, Morgan Stanley’s chief economist.
G20 leaders, who represent the world’s biggest economies, said Thursday that they stand ready to do “whatever it takes” to minimize the economic damage from the…