One must react intelligently to the crisis – not only quickly

Christof  Leisinger of the Neue Zurcher Zeitung interviewed William White, and the results were published in German on 1 April 2020 (a translation follows). Mr White welcomed the swift easing of fiscal and monetary policy to support the economy, in the face of the epidemic, but cautioned that measures should be targeted in order to increase effectiveness and reduce moral hazard. He also stressed that, pre-crisis, the global economy was already exposed to a prospective deep downturn because of the buildup of debt and various financial imbalances.  Since the policies being followed at the moment are essentially “more of the same”, thought must be given to more sustainable policies in the future. Reforms to the International Monetary (Non) System should rise further up the policy agenda.

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ChristofNZZ1April2020