A simple and neat slide from the OECD
Again, I'd like to point out that when it comes to the virus, it isn't about the mortality rate but more so about the possible disruptions that it may cause. And this also ties back to the fact that countries all over the world is continuing to take the situation very seriously.
So long as the virus continues to pose a major inconvenience to the world and as long as it continues to spread, it will stay that way until countries find a way to "live with it".
What exactly that is, even I don't know at this point in time. That all depends on how countries can cope with the situation.
Can a particular country cope with a sudden rise of 50,000 to 100,000 cases in a few weeks? Do they have the medical capacity to do so? What happens to the general workforce in such an event? Can the country afford to lock down major regions temporarily?
As long as the virus continues to hit people, supply-side shocks are very much a concern still at this stage. And that is something central banks can't really help with.
