RONAK GOPALDAS: Why Covid-19’s economic effects will be worse than the 2008 financial crisis
The crises are different in many ways but the solutions by governments and central banks remain the same
The Covid-19 pandemic has unleashed chaos in financial markets and threatens to inflict long-term damage to the global economy if the crisis response is not managed effectively. Though all efforts at present are aimed at stemming the physical contagion, concurrent efforts are needed to mitigate the financial and economic damage.
For investors there is a sense of déjà vu akin to 2008. Indeed, questions are starting to emerge around how the coronavirus fallout will compare with the global financial crisis. Though there is an eerie similarity to the 2008 recession, the current crisis is very different from the global financial crisis for five main reasons:..