Coronavirus could last years, says Japanese economist urging more tests, support

[snoop1130]

Coronavirus could last years, says Japanese economist urging more tests, support

 

Large screens on a building show live broadcasting of Japan's Prime Minister Shinzo Abe's news conference on Japan's response to the coronavirus disease (COVID-19) at Shinjuku district in Tokyo, Japan May 14, 2020. REUTERS/Issei Kato

 

TOKYO (Reuters) - Japan should boost coronavirus testing and offer more generous cash payouts to households as the epidemic could last for several years, an economist appointed to a government panel on the virus response said on Friday.

 

The government can fund huge spending on the coronavirus by issuing more bonds, which the central bank can buy to avoid causing a rise in long-term interest rates, said Keiichiro Kobayashi, who was appointed on Tuesday to join a committee advising the government on measures to combat the pandemic.

 

“It could take up to four years,” he said, referring to the time needed to develop and distribute an effective vaccine or medicine to combat the virus.

 

Consumption will fall globally during that time, he said.

 

That means stronger measures are needed to keep Japan’s economy from suffering prolonged, deep stagnation including paying 100,000 yen ($934) a month for every citizen that suffered a sharp drop in income from the outbreak, Kobayashi told Reuters.

 

The programme would cost the government up to 24 trillion yen, said Kobayashi, who is an economist at the private Tokyo Foundation for Policy Research.

 

The most important thing is to alleviate public anxiety about the coronavirus and its fallout, he said.

 

“It’s necessary to take steps to make people feel safe by strengthening testing and isolation capabilities,” Kobayashi said.

 

Kobayashi said he planned to share his proposals with Prime Minister Shinzo Abe and his cabinet.

 

The government appointed several private-sector economists to the panel, which had consisted mostly of medical experts, as efforts to contain the virus put deeper strains on an economy already on the cusp of deep recession.

 

Japan has reported nearly 16,000 coronavirus infections and over 650 deaths.

 

-- © Copyright Reuters 2020-05-15

 

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[jaiyen]

It will last for years and the financial fallout will take at least 10 years to recover but never back to where it is now.  The whole system of world structure is collapsing and nobody has the answers yet. I am sure China has a plan in place !!

[puipuitom]

2 hours ago, jaiyen said:

It will last for years and the financial fallout will take at least 10 years to recover but never back to where it is now.  The whole system of world structure is collapsing and nobody has the answers yet. I am sure China has a plan in place !!

Yses, buy every company when its value is strategic enough..

[Ketyo]

"It could take up to four years,” he said, referring to the time needed to develop and distribute an effective vaccine or medicine to combat the virus"

 

This guy is an economist not a vaccine expert. He knows as much as anyone how long it will take to develop a vaccine.

 

As for distribution he is probably very wrong, given the hundreds of millions of dollars the US and Europe are already pumping into vaccine manufacturing in preparation for the day.......