The coronavirus outbreak is set to deliver a sharp and deep economic shock – akin to that of a large-scale natural disaster. Markets have been fretting over the economic impact, evidenced by moves that are reminiscent of the 2008 global financial crisis. But we think today is different. Social distancing measures to fight the outbreak will reduce economic activity dramatically, but this shock should not fundamentally derail the global economy, provided authorities deliver a fiscal and monetary policy response that is both decisive and comprehensive. Developed market stocks fell as much as 27% since peaking in ... (full story)