Jerome Powell, chairman of the U.S. Federal Reserve, listens during a House Financial Services Committee hearing in Washington, D.C., U.S. (Photographer: Andrew Harrer/Bloomberg)

(Bloomberg Opinion) -- The coronavirus pandemic has led to a historic economic collapse, both here and around the world. The Federal Reserve responded by slashing rates to zero and vowing to buy trillions of dollars in new assets. What will be the impact of these Fed actions is the question that this week's guest on Masters in Business, Jim Bianco, president of Bianco Research, tries to answer.

Some expect a rapid recovery and spike in inflation; others see a long, slow recovery, more in the shape of a swoosh than a V.

Bianco, a former fixed-income analyst who covers equities, comes at it a bit differently. He says the present economic debate is over whether the economy is experiencing a supply or demand shock. Has the economy crashed because of the mandated business closures, hurting the supply side? Or have consumers, wary of leaving their homes, been the main factor, crushing demand? One thing seems certain: consumer reluctance to resume pre-pandemic activity will play a big part in determining how long the coronavirus hangover lasts.

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