JRJ: Would the pandemic change our daily life forever？ For example, some jobs may disappear, and people may prefer travelling less.
The pandemic will definitely have significant long-term economic and social effects. Remote work will likely continue, as more companies evaluate how to best keep their employees safe. Business travel will likely resume, but it won’t be for another 3-4 years before it is back to what it was pre-COVID-19.
JRJ: Do you think that governments in Europe and the United States are dealing with this economic crisis in an effective way? How do you assess the measures that are being taken?
The United States is not effectively or appropriately managing the crisis. The European Union is dealing with the crisis much better. However, the problem is complex and difficult to manage in any case.
JRJ: Few days ago, Fed announced that it would start buying corporate bonds, with a total amount of approximately $75 billion. There are some comments pointing out that this is to save some companies with taxpayer's money. I wonder if you are agree with this perspective? Will the Fed's aggressive measures work?
Yes. Aggressive measures by the Federal Reserve are needed and will work. However, in the near- to medium-term, only health solutions will overcome the economic recession we face.
JRJ: According to the recent prediction by IMF, we knew that coronavirus crisis was much more severe than the 2008 financial crisis, which almost becomes a consensus. But how fast will the economy recover is still a question. There are many hypothesis of economics recovery- V,W, and U with flattened bottom. So what is your opinion about the recovery？
The recovery cannot be viewed as having a single-issue fix. Any recovery will be both economic and medical, which is the path we should be on moving forward.
JRJ: Many people are worried about decoupling, protectionism and isolationism in post-pandemic era. Ray Dalio held the view that the principles of autarky and tension would be our future environment. Do you agree with him? What do you think of this issue?
It is difficult to predict whether isolationism will prevail in the post-pandemic era. In part yes, but not as an overall strategy. In the post-pandemic world, sustainable economics will prevail. Our treatment of animals MUST change, as it is behind this and future pandemics, which could be much worse. Additionally, vegetarian eating must also be considered. Avoiding meat as a source of food can, by itself, reduce about 20 percent of human emissions of CO2.
JRJ: Any advice for policymakers and investors?
Investors must be as involved as possible and help create a new sustainable path for the world economy. Everybody knows this, but the reality lags and will soon expose itself. Policy makers must guide markets and promote sustainable and equitable forms of growth for everybody in the world economy. There is no other path to the future.