Despite a global economic crisis comparable only to the Great Depression, near-term financial stability risks have been contained with the help of unprecedented monetary policy easing and massive fiscal support across the globe. […]
The economic impact of the COVID-19 pandemic on emerging market economies far exceeded that of the global financial crisis. Unlike previous crises, the response has been decisive just like in advanced economies. […]
There has been much discussion in recent months about how workers who transitioned to working from home—and those who were deemed “essential”—are less affected by the layoffs and job losses brought on by lockdowns than are workers in “social” jobs that require closer human interaction, like restaurant workers. […]
Much the same way COVID-19 hits people with pre-existing health conditions more strongly, so is the pandemic-triggered economic crisis exposing and worsening financial vulnerabilities that have built up during a decade of extremely low rates and volatility. […]
I have been saying for a while that this is a “crisis like no other.” It is:
More complex, with interlinked shocks to our health and our economies that have brought our way of life to an almost complete stop;
More uncertain, as we are learning only gradually how to treat the novel virus, make containment most effective, and restart our economies; and
Truly global. Pandemics don’t respect borders, neither do the economic shocks they cause.