Macro-Financial Implications of the COVID-19 Pandemic
This paper examines the macro-financial implications of the COVID-19 pandemic. The pandemic represents a massive macro-economic demand and supply shock with significant adverse ramifications for global economic growth, employment, and poverty and d...
| Main Authors: | , , , , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/428531592796638957/Macro-Financial-Implications-of-the-COVID-19-Pandemic http://hdl.handle.net/10986/33955 |
| Summary: | This paper examines the macro-financial
implications of the COVID-19 pandemic. The pandemic
represents a massive macro-economic demand and supply shock
with significant adverse ramifications for global economic
growth, employment, and poverty and demands an unprecedented
response by national policy makers and international
organizations. Prior to the outbreak of the pandemic, many
economies already displayed increased macro-financial
vulnerabilities in the form of high levels of debt of
households, businesses, and the public sector, secular
stagnation of economic growth, and an extended period of
quantitative easing and low interest rates. The economic
impact of the pandemic in the form of a global recession due
to social distancing measures, losses of revenue and income
for households, businesses, and the public sector, increased
public spending to manage the health impacts, contain the
pandemic, and protect vulnerable businesses, households,
state-owned enterprises, and public entities adds
significantly to pre-existing macro-financial
vulnerabilities. Managing these vulnerabilities will be
critical for a resilient recovery from the COVIC-19
pandemic, requiring a range of short- and medium term
macro-financial policy measures. |
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