Financial Policy During the COVID-19 Crisis

A special section of the GCFP blog to provide a forum for academics, practitioners and policymakers to analyze proposed policy initiatives and to suggest new ones

With the coronavirus pandemic causing massive disruptions to global  financial markets and economies, identifying and implementing the most effective financial and economic policies without delay is imperative.

We are launching this special section of the GCFP blog to provide a forum for our expert affiliates—academics, practitioners and policymakers—to analyze proposed policy initiatives and to suggest new ones. We hope it will be a resource for policymakers, journalists, students and the wider GCFP community to learn more about the issues and the pros and cons of different responses.

Consistent with the GCFP’s mission of non-partisanship and offering analysis but not policy advice, any recommendations contained in these posts are those of the authors and do not represent the views of the GCFP.

Usable bank capital
Alissa Kleinnijenhuis, Postdoctoral Research Associate, MIT GCFP; Research Fellow, Institute of New Economic Thinking, University of Oxford; Laura Kodres, Distinguished Senior Fellow, MIT GCFP; and Thom Wetzer, Associate Professor of Law and Finance, University of Oxford; Senior Research Fellow, Institute for New Economic Thinking at the Oxford Martin School.

Funding pandemic relief: Monetise now
Refet A. Gürkaynak, Professor of Economics and Department Chair, Bilkent University and Deborah J. Lucas, Sloan Distinguished Professor of Finance and Director, MIT Golub Center for Finance and Policy

Estimating Probabilities of Success of Vaccine and Other Anti-Infective Therapeutic Development Programs
Andrew W. Lo, Charles E. and Susan T. Harris Professor at MIT Sloan School of Management and Co-Director, MIT Golub Center for Finance and Policy

Federal stimulus favors wealthy investors and major companies
Robert C. Pozen, Senior Lecturer, MIT Sloan School of Management

Bayesian Adaptive Clinical Trials for Anti‐Infective Therapeutics during Epidemic Outbreaks
Andrew W. Lo, Charles E. and Susan T. Harris Professor at MIT Sloan School of Management and Co-Director, MIT Golub Center for Finance and Policy

Brakes or bans: Protecting financial markets during a pandemic
Laura E. Kodres, Senior Distinguished Fellow, MIT Golub Center for Finance and Policy

Opinion: What to know about how the coronavirus crisis will impact your money market fund
Robert C. Pozen, Senior Lecturer, MIT Sloan School of Management

3 Questions: Jonathan Parker on building an economic recovery
Jonathan A. Parker, Robert C. Merton Professor of Finance at MIT Sloan and Co-Director, MIT Golub Center for Finance and Policy

Are Circuit Breakers Doing Their Job?
Laura E. Kodres, Senior Distinguished Fellow, MIT Golub Center for Finance and Policy

Policy Rx for the economy: Cash or credit?
Deborah J. Lucas, Sloan Distinguished Professor of Finance and Director, MIT Golub Center for Finance and Policy

Finance profs to Congress: “Bail out people, not corporations”
Deborah J. Lucas, Sloan Distinguished Professor of Finance and Director, MIT Golub Center for Finance and Policy

A Traditional Economic Stimulus Won’t Work. Here’s What Might.
Daniel L. Greenwald, Assistant Professor of Finance at the MIT Sloan School of Management

Housing Finance Policy and the Coming Recession
Devajyoti “Doc” Ghose, Advisor, Kah Capital Management and Edward L. Golding, Executive Director MIT Golub Center for Finance and Policy

A Simple Way Forward to Address the Economy During the Pandemic
Bernard R. Horn, Jr., President of Polaris Capital Management LLC