Coronavirus: Rewriting the economic rulebook – Capital Economics
|The crisis caused by the coronavirus has upended conventional economic thinking. This is evident in several different ways, as Neil Shearing from Capital Economics notes.
Key quotes
“The role of governments is being rethought. One of the legacies of this crisis will be higher debt burdens, but now is not the time to worry about this. The immediate priority is to cushion the collapse in demand.”
“The spirit of individualism that has prevailed for the past thirty years is being supplanted by a new spirit of collectivism. Public health is, after all, the ultimate public good.”
“One lesson for the future is that we should resist the temptation to view new economic shocks through the prism of previous shocks.”
“The road ahead is unusually uncertain. What we can be sure of at this stage is that the slump in output over the coming months will be huge and the virus will leave a complex set of questions in its wake.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.