Question

The advent of coronavirus pandemic triggers a global economic crisis in 2020, including an economic recession lasting many weeks or months in many countries? As a financial manager proffer global remedies to this financial crisis.

Answer 1

Due to Demand slowdown which has been triggered by coronavirus, there is an impending recession around the way as the countries has decided to shut down their economies and there is very minimal demand in order to support any kind of global growth so there is a high likelihood of global recession.

Recession can only be proactively managed, once the impact is visible into the economies, it can only be minimised through various reactive steps like the Federal Reserve is doing with the cutting of interest rates to such levels where it can help the economy to stimulate the demand. The federal Reserve is also helping out with several bailout packages to different sections of society in order to minimise the impact of the Corona virus so Central banks should adopt with easing of the monetary policies in order to to minimise and reduce the impact of this major crisis.

This is the time when any kind of trade restrictions, and domestic led demand policies should be avoided and economy should be opened up in order to freely trade so that it can help in generation of a lot of demand.

One of the measures various economies can take by storing up a lot of gold reserves and American dollars in their store because these are the times, gold will gain as there is lot of uncertainty around the corner and American currency will also gain against emerging markets.

So one can always help themselves through this Corona virus concern by taking measures which will minimise the impact of the whole health crisis which age triggering a financial collapse.