Second, we seem to be in an era of frequent shocks each marked by unpredictability and complexity. How should our policy approaches adjust so that we are better equipped to deal with such crises?
SINGAPORE (Apr 17): The International Monetary Fund (IMF) just released shockingly downbeat forecasts showing the world economy contracting nastily this year. Even if the outcome turns out to be better than the IMF believes, it is clear that the Covid-19 crisis is one of the most severe challenges we have faced in many years. As we go about managing the crisis, a number of difficult questions have arisen — and two in particular need attention.
The first is that an act of god such as a pandemic causes losses which have to be shared out and financed. What is a fair and efficient way to divide up the losses among the key players — governments, workers, shareholders, banks and insurance companies?
