After the “Black Monday” in the global market, the United States, Europe, and Japan are planning to introduce more economic stimulus measures, from fiscal policy to monetary policy have been put on the agenda, into a new round of economic stimulus mode to resist the downside risks. Analysts say the current economic and financial situation is more severe than expected and requires multiple emergency measures. Us, Europe and Japan are considering a new round of economic stimulus plans

Us will step up economic stimulus

US President Donald Trump said on Tuesday that he would discuss with congress a “very significant” payroll tax cut and other bailout measures as well as a series of important economic measures to support businesses and individuals hit by the new pneumonia outbreak and stabilize our economy.

According to a report on the website of politico, US President Donald Trump discussed fiscal stimulus measures with the White House and top Treasury officials on the afternoon of September 9. In addition to seeking congressional approval for the payroll tax cut, options being considered to include paid leave for certain groups of workers, a bailout for small businesses and financial support for industries hit by the outbreak. Some economic officials have also offered to provide aid to hard-hit areas.

White House advisers and economic officials have spent the past 10 days exploring policy options to deal with the impact of the outbreak, sources said. The stock market in New York fell more than 7 percent in the morning before hitting the 7 percent limit, triggering a circuit breaker. Trump’s statement marks a shift in the administration’s position on the need for economic stimulus, Bloomberg reported.

The federal reserve also sent a further stimulus signal on the 9th, by increasing the scale of short-term repo operations to maintain the operation of the short-term financing market.

The federal reserve bank of New York said it would increase its overnight and 14-day repo operations to meet rising demand from financial institutions and avoid further pressure on U.S. Banks and companies.

In a statement, it said the fed’s policy changes were intended to “help support the smooth functioning of funding markets as market participants implement business resilience programs to respond to the outbreak.”

The fed’s open market committee last week cut the benchmark federal funds rate by half a percentage point, bringing its target range down to 1% to 1.25%. The fed’s next meeting is scheduled for March 18, and investors expect the central bank to cut rates again, possibly even sooner.

The EU discusses opening a subsidy window

European officials and academics are also increasingly concerned about the impact of the outbreak, saying the region is at risk of recession and pledging to urgently respond with economic stimulus measures.

The head of the Ifo institute for economic research (Ifo) told German broadcaster SWR on Monday that the German economy could be plunged into recession as a result of the outbreak and called on the German government to do more.

In fact, the German government announced a series of fiscal subsidies and economic stimulus measures on April 9, including the relaxation of labor subsidies and the increase of subsidies for workers affected by the outbreak. The new standards will take effect from April 1 and last until the end of this year. The government also promised to bring together representatives of Germany’s major industries and unions to work out measures to provide financial support to the worst-hit companies and ease their funding constraints. Separately, the government has decided to increase investment by €3.1bn a year from 2021 to 2024, for a total of €12.4bn over four years, as part of a comprehensive stimulus package.

Other European countries are also trying to save themselves. 9 the French economy and finance minister le Maire says, affected by the outbreak, the French economic growth could drop below 1% in 2020, the French government will take further measures to support the enterprise, including permit deferred payment of social insurance enterprise, tax cuts, to strengthen the French national investment bank for small and medium-sized enterprises capital, national mutual aid and other measures. Slovenia announced a 1 billion euro stimulus package to ease the impact on businesses.

The European Union is also gearing up to deploy a new stimulus package. Eu’s leaders will soon hold an emergency teleconference to discuss a joint response to the outbreak, officials said Thursday. The European Commission is considering all options to support the economy and evaluating the conditions that would give governments the flexibility to provide public subsidies to industries hit by the outbreak, commission President Martin von der Leyen said on the same day.

Japan’s fiscal and monetary policy will be strengthened

As Japan’s stock market has entered a technical bear market, officials have said they are ready to introduce new stimulus policies to prevent excessive market panic and further economic downturn.

Japanese prime minister Shinto Abe said Thursday that the Japanese government will not hesitate to implement all necessary measures to deal with the current global public health issues, foreign media reported.

The Japanese government plans to spend 430.8 billion yen ($4.129 billion) on the second wave of its response to the outbreak, two government sources with direct knowledge of the situation told Reuters on Thursday. The government also plans to take fiscal measures totaling 1.6 trillion yen ($15.334 billion) to support corporate financing, the sources said.

In a speech, bank of Japan governor Hirohito Kuroda stressed that the central bank will act without hesitation in accordance with the code of conduct set out in the previous statement to achieve market stability as uncertainty about the Japanese economy grows, investor confidence deteriorates and the market moves unsteadily.

Most economists expect the Bank of Japan to increase stimulus at its monetary policy meeting this month while leaving interest rates unchanged, according to a survey.