Dr. Dushni Weerakoon chairs session at SANEM International Development Conference (SIDC)
02 October 2020
Dushni Weerakoon, Executive Director, IPS chaired a session on ‘Macroeconomic Impacts’ at the SANEM International Development Conference (SIDC) 2020 “COVID-19 and Development Challenges”. During the session regional and country studies were presented including papers on “COVID-19: The Impact and the Impetus for policy in Asia and the Pacific” by Dr. Sweta C. Saxena, Chief, Macroeconomic Policy and Analysis Section, UNESCAP, Bangkok and “Growth-at-Risk (GaR) in India amidst COVID-19 uncertainty” by Dr. Indrani Manna, Assistant General Manager, Research, Reserve Bank of India.
Dr. Weerakoon noted that fiscal policy, especially on the spending side will be the more effective response the COVID-19 economic shock given that such measures have more immediate multiplier effects, whereas monetary policy works with a lag owing to slower transmission through the financial system. But as central banks resort to direct financing of fiscal spending – including ‘yield curve control measures’ for government debt management – the lines between fiscal and monetary policy is becoming rather blurred.