Question

how is it now different given recession prospect during and after covid 19

Answer 1

Taking into account rapidly changing economic conditions, the UN DESA's World Economic Forecasting Model has estimated best and worst-case scenarios for global growth in 2020.

A little more than 10 years ago, as the world was entering the Great Recession, stakeholders had to look far back in the rearview mirror to the Great Depression for policy guidance. While the actions of the 1930s did offer important lessons for 2008 — most notably the need to expand the money supply — the economy of the 1930s was fundamentally different than the global economy of the early part of this century.

If there is a silver lining in the economic portion of the crisis we are seeing unfold today, it is that the relatively compressed timeline between 2008 and today means there is great relevance in one of the most consequential approaches policymakers employed then. In particular, the lesson of 2008 is that a globalized economy necessitates a global solution.

Today, the economic outlook for the world is bleak, with the coronavirus crisis already causing one of the most severe shocks to global growth in a century. Projections are that the second quarter of 2020 will be the worst quarter in generations.