Spillover of COVID-19: Impact on the Global Economy

Peterson Ozili and Thankom Arun

MPRA Paper from University Library of Munich, Germany

Abstract: How did a health crisis translate to an economic crisis? Why did the spread of the coronavirus bring the global economy to its knees? The answer lies in two methods by which coronavirus stifled economic activities. First, the spread of the virus encouraged social distancing which led to the shutdown of financial markets, corporate offices, businesses and events. Second, the exponential rate at which the virus was spreading, and the heightened uncertainty about how bad the situation could get, led to flight to safety in consumption and investment among consumers, investors and international trade partners.

Keywords: Covid-19; Coronavirus; SARS-CoV-2; outbreak; pandemic; financial crisis; global recession; public health; spillovers; monetary policy; fiscal policy; liquidity provision; Central banks. (search for similar items in EconPapers)
JEL-codes: E3 G15 G28 H81 H84 I1 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-hea, nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (198)

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https://mpra.ub.uni-muenchen.de/99850/1/MPRA_paper_99850.pdf revised version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:99317

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