2020 Financial Stability Conference: Stress, Contagion, and Transmission

COVID-19 has had a substantial impact on economies and financial markets worldwide, though we recognize this impact is secondary to the wide-ranging health and survival issues this virus has engendered. Nevertheless, the pandemic has provided an authentic, severely adverse stress event through which we can glean specific lessons and apply particular remedies. Though the triggering event was different from what had been expected, the response to the 2008–2009 financial crisis created a suite of tools and playbooks for crisis response. Given current events, understanding exactly how these tools were or might have been implemented, along with how effective they have proven, may help illuminate lessons from the market and institutional responses to the pandemic.