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Patrick Artus from Natixis analyzes the differences between the 2008 crisis and the current crisis.

Key quotes

“The subprime crisis in 2008-2009 was a demand-side crisis, and the answer was rapid demand stimulation, which was more successful in the United States than in the euro zone given the ECB’s slow reaction.” 

“The coronavirus crisis in 2020 is a crisis of falling supply; the answer is to prevent the increase in company bankruptcies from leading to a banking crisis, and for this to happen monetary policy must enable a massive fiscal deficit, which has been done rapidly.” 

“The problem in the United States is the bond financing of companies, whereas in the eurozone there is financing by bank loans, which is easier to maintain.”