Gita Gopinath terms current crisis as Great Lockdown

Proactive fiscal policy needed to rebound

Terming the current economic stasis as ‘The Great Lockdown’, International Monetary Fund (IMF) Chief Economist Gita Gopinath stated that it is fundamentally different from the Great Depression and 2008 financial crisis. Gopinath believes that a substantial fiscal stimulus package will push up the fiscal deficit and debt-to-GDP ratio of economies. Hence, in order to rebound, the IMF Chief has suggested on having a proactive fiscal policy. She further added that if containment measures work and this is not a very prolonged period, if people get back to work more quickly and if policies that have been put in place are effective then only a recovery can be seen in 2021.