Economist Hatzius Sees ‘V-shaped or Vaccine-shaped’ U.S. Recovery

The video discusses the waning positive market reaction to vaccine news and the current economic challenges, particularly in the US and Europe. It highlights the uncertainty around fiscal outlooks and reduced growth projections due to divided government. Despite short-term slow growth, the video predicts a strong economic recovery in 2021, driven by positive vaccine news and reduced COVID-19 infections due to temperature sensitivity. The recovery is expected to be V-shaped, with significant growth in Q2 and Q3, returning to pre-pandemic GDP levels.

What is the current market reaction to the vaccine news?

• The reaction is waning.

• The reaction is becoming more positive.

• The reaction is negative.

• The reaction is unchanged.

What is the expected fiscal stimulus under a divided government?

• $700 billion

• $1 trillion

• $1.5 trillion

• $500 billion

How is the economic growth expected to change in Q4 and Q1?

• It is expected to decline sharply.

• It is expected to slow down.

• It is expected to remain stable.

• It is expected to accelerate.

What factor is expected to help reduce COVID-19 infections in the spring of 2021?

• Stricter lockdown measures

• Increased vaccination rates

• Improved healthcare facilities

• Temperature sensitivity

By which quarters is the economy expected to return to pre-pandemic GDP levels?

• Q4 and Q1

• Q2 and Q3

• Q1 and Q2

• Q3 and Q4