The Great Lockdown: What to expect when you are expecting an economic crisis
Keywords:
Economic crisis, COVID-19, Great Lockdown, Financial assets, DebtAbstract
As the COVID-19 pandemic has imposed restrictions on mobility all over the world, more and more analysts are referring to this process as the beginning of an unprecedented crisis which repercussions are still to be endured. This crisis has already been labeled by the International Monetary Fund as the Great Lockdown. This exceptional nature has become a source of great anxiety on what can be expected in years to come. Still, as we move forward, lessons from previous crises can be learnt since many comparisons across crises episodes can be identified, even when their particular causes for and timing may be different. Therefore, in this context, it is useful to look back and try to prevent, as much as possible, its negative effects. In this sense, the present work reviews some of the key lessons learnt from the 2008 crisis and its aftermath, so decision makers and stakeholders can develop preemptive strategies for the months and years to come. By doing so, the paper analyses the role of financial assets, debt and regulation in understanding a crisis prone economic environment and points out that even before the COVID-19 outbreak there were many warning signs in the international scene.
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References
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