If sustained, these conditions could lend themselves to persistently low inflation and higher unemployment. Globally, and here in New Zealand, this is why fiscal authorities urgently responded to these challenges, providing business and household support in a variety of ways to shore up jobs, incomes, and confidence. It was also immediately clear to central banks globally that expansionary policies were urgent and necessary.
A survey conducted by this group found that many homeowners do not understand that lenders also want to avoid foreclosure. Thus, the simple step of encouraging borrowers in trouble to contact their lenders can be very productive.