By Bilal Hafeez 14-07-2020

Podcast Review: Macro Hive Conversations With Raghuram Rajan

(6 min read)
Resize text:


We were delighted to have former RBI governor (2013-2016) and former IMF chief economist (2003-2006) Raghuram Rajan as our podcast guest last week. We have distilled his key thoughts into a note in case you have no time to listen to the podcast – although I highly recommend you make some!

5 Stages of the COVID Recovery

Rajan outlined five key stages to managing the COVID crisis:

Relief: Relief measures for households and small business are needed while directly fighting the virus, but he cautioned that this stage can only last so long before stimulus measures drop back to more sustainable levels.
Repair & Restructure: Firms’ capital structures may need to be repaired (and debt restructured) to allow access to working capital, or to borrow to invest, once economies reopen.
Recovery: Targeted stimulus may be needed in this phase. Rajan gave the example of stimulating construction because the outdoor nature of building work leaves reduced risks of virus transmission while also boosting demand for raw materials.
Reforms: ‘Trying to fix the fault lines that have existed for some time but are even more highlighted by the pandemic’. Examples discussed were regenerating left-behind regions and reforms in employment.

Rajan highlighted that these steps may need to be combined or re-ordered to suit individual countries. But, in general, these are the five stages of dealing with the crisis.

TO READ THIS HIVE EXCLUSIVE
SUBSCRIBE TO MACRO HIVE PRIME

£39/month thereafter

For access to our Slack Chat Room, where we discuss all things markets with our researchers and subscribers

START YOUR FREE TRIAL


MOST READ

Successful Start-Ups Build Strong Founding Teams (4 min read)

By Sam van de Schootbrugge | Feb 10, 2021
Start-up success hinges on many factors, but most would agree that the skills and experience of the founder and initial founding...

Where Will the Economy Find 10 million Lost Jobs? (3 min read)

By John Tierney | Feb 08, 2021
The headline January labour market report was another downer – private payrolls rose a scant 6,000 versus the consensus...

Where Can you Get Higher Bond Yields?

By Caroline Grady | Dec 04, 2020
US yields are rising. The combination of growing optimism over a global recovery given vaccine progress, and the possibility of a US...

PREMIUM CONTENT

The Fed is Failing (1 min read)

By Bilal Hafeez | Mar 01, 2021
The Fed’s failure is neither that rates…

Do ESG Ratings Affect IPO Valuations? (4 min read)

By Sam van de Schootbrugge | Mar 03, 2021
Summary A new Journal of Corporate Finance…

Want To Join Our Community Of Leading Investors And Researchers In Our Slack Chat Room?