COVID-19 Pandemic: A Snapshot of Global Economic Repercussions and Possible Retaliations

Abstract

Both human and economic cost of COVID-19 tsunami has continued to peak as nobody can even envisage when and how the shock will be solved. The value of life is uncountable on the other hand every sign clears that economic plunge will be prolonged and painful. The purpose of this paper is to provide a snapshot of global economic disaster, focusing especially on major regions (China, USA, and Italy) due to COVID-19 and possible economic responses to mitigate the severity of this pandemic. The paper first provides an overview of global economic imbalances reflected by growing medical and financial emergencies, falling asset prices, tightening financial conditions, abatement of global GDP, world trade and supply chain disruptions, the constraint on tourism and traveling, raising uneven inflation, augmenting poverty, the suffering of migrants, political discord and antagonism may lead to being the unexpected worst economic downturn in the history. Along with identifying these imbalances, possible economic responses have been presented amid the shock of COVID-19 and strategies for recoveries. The paper concludes that containing initiatives and economics of pandemics is not enough to beat the novel coronavirus (COVID-19) without solidarity and consensus among nations around the globe.

Keywords: COVID-19, Financial crisis, Recession, Helicopter money, Monetary policies

JEL Classification: A120, G01, P34, E62, E52