Stagpression: The Economic and Financial Impact of COVID-19 Pandemic
Contemporary Economics Vol. 15, Issue 1, pp. 19-33
15 Pages Posted: 5 May 2020 Last revised: 20 Mar 2021
Date Written: May 5, 2020
This paper formulates an analytical framework to understand the spatiotemporal patterns of epidemic disease occurrence, its relevance, and implications to financial markets activity. The paper suggests a paradigm shift: a new multidimensional geometric approach to capture all symmetrical and asymmetrical strategic graphical movement. Furthermore, the concept of stagpression is introduced, a new economic phenomenon to explain the uncharted territory for the world economies and financial markets are getting into. The Massive Pandemic Contagious Diseases Damage on Stock Markets Simulator (φ-Simulator) to evaluate the determinants of capital markets behavior in the presence of an infectious disease outbreak. The model investigates the impact of COVID-19 on the performance of ten stock markets, including S&P 500, TWSE, Shanghai Stock Exchange, Nikkei 225, DAX, Hang Seng, U.K.-FTSE, KRX, SGX, and Malaysia-FTSE.
Keywords: Stagpression, Pandemics, Economic Modeling, Economic Desgrowth, Policy Modeling, Stock Market
JEL Classification: R11, R12
Suggested Citation: Suggested Citation