Question

can you write down.

1- the economic effect of the coronavirus on the global economy.

2- and steps to overcome

Answer 1

1. The battle against Covid-19 is an open fight. China seems to have fought the fight first. And in reducing the outbreak, Hong Kong, Taiwan, Singapore and Japan have chalked up significant results, no doubt due to their experiences in coping with the 2003 Sars epidemic. By comparison, Europe and the US are just waking up from their delusions of invulnerability. Consequently, the epidemic now rages through the west.

Italy, which has especially close economic links to China, is the hardest-hit western country so far. The new Wuhan (the Chinese megacities where the coronavirus first emerged) is Northern Italy. The Italian government has jammed on the brakes with its overloaded health care system, shutting down the retail economy and quarantining the whole region. All shops are closed except for pharmacies and grocery stores. Citizens have been told to stay at home and are only permitted to visit public areas for shopping or commuting to work. Many public and private debt commitments were suspended (such as residential rentals and interest payments).

A serious recession can no longer be prevented on the economic front, and some analysts are already calling on governments to enact steps to shore up aggregate demand. Yet, given that the global economy is suffering from an unprecedented supply shock, that suggestion is insufficient. People are not at work for being sick or quarantined. In such a scenario, stimulus to demand would merely fuel inflation, possibly leading to stagflation (weak or declining GDP growth alongside rising prices), as occurred during the oil crisis of the 1970s, when another important production input was in short supply.

2. What is really required is fiscal policies to save companies and banks from collapse, so that they can quickly recover once the pandemic is over. Policymakers should consider different forms of tax relief and public guarantees to help companies borrow where appropriate. But a short-time job allowance is the more promising alternative. This strategy, which has been tried and tested in Germany, addresses the workforce's underemployment by the same channels that are currently being used for unemployment insurance. Better still, it is hardly costing anything, because it avoids the losses that would result from increased real unemployment.

Yet, most significantly, in taking direct action against Covid-19 all governments will obey China. No one should be limited by a shortage of funds on the frontlines. Hospital intensive care units have to be expanded; temporary facilities have to be built; and respirators, protective equipment and masks have to be mass-produced and made available to anyone who needs them. In addition, public health authorities must be given the requisite tools and funds to clean factories and other public spaces. Sanitation is the order of the day. Of particular interest is large-scale population research. Growing case may be defined as saving several lives. Simply giving up on the pandemic isn't an choice.