IMF says global leaders should enact 'wartime' policy response

The International Monetary Fund said that global policymakers should enact “wartime” measures to fight the coronavirus crisis.

The IMF also predicted that the “war” phase of the pandemic will endure “at least” one to two quarters of the year.

In a blog post published on Wednesday, the IMF said that the virus must first be contained and then the success of the policy measures from governments will determine how quickly the economy recovers from the outbreak.

The main supplies should go to the health sector, cash transfers to individuals who lost their jobs and “exceptional support” such as wage subsidies to private companies.

“If policies ensure that workers do not lose their jobs, renters and homeowners are not evicted, companies avoid bankruptcy, and business and trade networks are preserved, the recovery will occur sooner and more smoothly,” the IMF said.

The IMF said “greater intervention from the public sector” is warranted while the pandemic lasts.