"It is the demand side and financial markets that need to be taken most seriously," says University of Redlands Professor Nathaniel Cline about the economic fallout of the COVID-19 pandemic.

"What is clear now is that while the coronavirus has interrupted the production and distribution of goods and services, it is the demand side and financial markets that need to be taken most seriously," says Nathaniel Cline, a nationally recognized macroeconomist and professor at the University of Redlands in California. 

"On the demand side, the federal government has been a bit slower to act but faces a unique challenge — how do we support families’ incomes while also asking them to not spend money? A variety of proposals have been offered and we are just now getting details about the President’s package being negotiated in Congress.

"On the financial side, the US Federal Reserve has taken dramatic action beyond lowering its policy interest rate. These actions have sought to stabilize the 'plumbing' of banks and credit markets which are essential to the daily functioning of the economy. To be clear, this has been somewhat successful (with international dollar demand being an exception). What it was not intended to do was support stock markets. This is a myth that has been circulating and should be put to bed." 

Cline holds a Ph.D. in economics and is a recognized expert on economic history, the U.S. and international macroeconomics, Bitcoin, Brexit, and international finance.