"Helicopter money was used by the Hong Kong government earlier in the virus outbreak and is now being suggested by the White House. These measures are designed to directly stimulate consumer demand or support corporate balance sheets by non-refundable government cash handouts.
Markets are fixated on how long and how deep the economic contraction will be as a result of Coronavirus.
Much of the support provided by governments and central banks so far has an implementation lag until it enters the real economy.
Interest rates are a classic example of this and take between 18 to 24 months to fully take hold.
The highly accommodative monetary policy support that we have seen in the last two weeks will supercharge the recovery when it comes but will do little to mitigate corporate stress in the next few months.
As a result, markets may not find a real floor until fiscal stimulus directly tackles the economic impact of the next few months.
