Markus Brunnermeier: Throwing a Covid-19 Liquidity Lifeline for SMEs

Markus Brunnermeier is the Edwards S. Sanford Professor of Economics and Director of the Bendheim Center for Finance at Princeton University. In this episode, Prof. Brunnermeier explains the nature of the covid-19 economic shock, why it poses a threat to financial stability, the $2tr stimulus package and why the current solutions for funding small & medium-sized businesses are still insufficient, how to bring the economy back to life in the long run, and other topical political & economic debates related to the crisis. One of the most prominent economists of our time, Prof. Brunnermeier focuses his research on international financial markets and the macro economy with special emphasis on bubbles, liquidity, financial crises and monetary policy. He promoted the concepts of liquidity spirals, CoVaR as co-risk measure, the paradox of prudence, and the I Theory of Money. He is or was a member of several advisory groups, including to the IMF, the Federal Reserve Bank of New York, the European Systemic Risk Board, the German Bundesbank and the U.S. Congressional Budget Office.