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Crumbling and uncoordinated policies behind the market collapse

Alicia García Herrero | Chief Economist for Asia Pacific at NATIXIS; Senior Research Fellow at BRUEGEL
After more than a month of horrible news on the coronavirus outbreak, first in China and then globally, the markets have finally abdicated. For the whole of February, markets had managed to endure the first ups and downs, especially outside of China. The reasons are as well-known as wrong. To begin with, the area of contagion was expected to remain limited to China and, at best, to the rest of Asia. In addition, once it was understood that the impact on the Chinese economy was going to be very negative, the markets came up with the hope of a great […]
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