As policy makers around the world are gearing up in crisis mode and making important decisions to save their national economies, one thing is certain – the world economy after the indefinite confinement will be dramatically altered. The change will be greater than even before, even more than in the aftermath of the Great Depression of the 1930s and the Great Recession that took place just over a decade ago.

The macroeconomic environment will be left with the largest public deficit in history for most of the OECD countries and emerging markets, while world debt will reach once unthinkable levels.

“There is only one equilibrium, complete economic inactivity until the danger passes” is how Jason Furman, the former chairman of the Council of Economic Advisers and Professor at Harvard University, summarised the exceptional state of the global economy.

https://www.neweurope.eu/article/ruminations-on-the-post-pandemic-global-economy/

 

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