Pandemic Archives - Page 2 of 4

Slow-Healing Scars: The Pandemic’s Legacy

By Adebisi SamuelPosted on March 31, 2021Posted in Africa & World EconomyTagged Business, COVID-19, Lockdown, Pandemic, RecessionNo Comments

Recessions wreak havoc and the damage is often long-lived. Businesses shut down, investment spending is cut, and people out of work can lose skills and motivation as the months stretch on. But the recession brought on by the COVID-19 pandemic is no ordinary recession. Compared to previous global crises, the contraction was sudden and deep—using quarterly data, global output declined about three times as much as in the global financial crisis, in half the time.

What 1919 Teaches Us About Pent-Up Demand

By Aminu MusaPosted on January 12, 2021Posted in AgenciesTagged 1919, 2021, COVID-19, demand, Pandemic, warNo Comments

1918 should have been a great year for baseball. A young left-handed pitcher named Babe Ruth began the year by pitching an opening-day victory for the Boston Red Sox. Shortly after, Ruth lobbied the team’s manager to let him play other positions so he could spend more time at the plate. The strategy paid off, and Ruth began his run as a home-run-hitting superstar, helping lead the Red Sox to the World Series.

When Inequality is High, Pandemics Can Fuel Social Unrest

By Joshua OlorunsaiyePosted on December 15, 2020Posted in Africa & World Economy, AgenciesTagged Inequality, Pandemic, Social unrest, Vicious cycleNo Comments

In the months and years following previous pandemics, the countries most affected saw a rise in social unrest. Based on this historical trend, the COVID-19 pandemic could pose a threat to the social fabric in many countries, but these trends do not pre-determine an outcome.

What to do When Low-for-Long Interest Rates are Lower and for Longer

By Okeowo EbenezerPosted on December 14, 2020Posted in AgenciesTagged Central Banks, Fiscal Stimulus, Interest Rate, Monetary stimulus, PandemicNo Comments

Central banks have played a pivotal role in easing financial conditions in response to the COVID-19 shock, and helped avert a catastrophic downturn. However, their work is far from done. Yet more monetary stimulus will be needed to support economic recovery, and central banks are implementing innovative new strategies to provide it.

How the Rich Get Richer

By Adebisi SamuelPosted on December 1, 2020Posted in AgenciesTagged COVID-19, Inequality, investment, Pandemic, Rich, taxNo Comments

A paper co-authored this year by economists from the IMF and other institutions confirms that wealthier people are more likely to earn higher returns on their investments. It also shows that the children of wealthy people, while likely to inherit that wealth, aren’t necessarily going to make the same high returns on investments.

Data Disruption: The Impact of COVID-19 on Inflation Measurement

By Joshua OlorunsaiyePosted on November 18, 2020Posted in AgenciesTagged Consumer Price Index, CPI, Food prices, Inflation, Pandemic, Sub-Saharan Africa, Undetected InflationNo Comments

Lockdowns, working from home, and physical distancing caused people to spend larger shares of their household budgets on food and housing, while fewer people bought nonessentials, like airline tickets and clothing. And with incomes down as millions have lost their jobs, spending on nonessential items will likely remain depressed.

COVID’s Impact in Real Time: Finding Balance Amid the Crisis

By Sheriffdeen AdeotiPosted on October 26, 2020Posted in AgenciesTagged Balance, Crisis, Pandemic, Real time, Recession, WEONo Comments

The IMF analyzed the economic effects of lockdowns and voluntary social distancing using two high-frequency proxies for economic activity: mobility data from Google and job openings posted on the website Indeed. As illustrated in the top chart below, over the entire sample of 128 countries used in the analysis, lockdowns and voluntary social distancing contributed equally to the drop in mobility during the first 3 months of a country’s epidemic.

Fiscal Policy for an Unprecedented Crisis

By Joshua OlorunsaiyePosted on October 25, 2020Posted in AgenciesTagged COVID-19, Crisis, Debt, Fiscal Policy, Pandemic, Tax RevenueNo Comments

The COVID-19 crisis has devastated people’s lives, jobs, and businesses. Governments have taken forceful measures to cushion the blow, totaling a staggering $12 trillion globally. These lifelines have saved lives and livelihoods. But they are costly and, together with sharp falls in tax revenues owing to the recession, they have pushed global public debt to an all-time high of close to 100 percent of GDP.

A Long, Uneven and Uncertain Ascent

By Adebisi SamuelPosted on October 24, 2020Posted in Africa & World EconomyTagged COVID-19, employment, Fiscal Policy, Fiscal Stimulus, Growth, IMF, Monetary Policy, PandemicNo Comments

This crisis is far from over. Employment remains well below pre-pandemic levels and the labor market has become more polarized with low-income workers, youth, and women being harder hit. The poor are getting poorer with close to 90 million people expected to fall into extreme deprivation this year. The ascent out of this calamity is likely to be long, uneven, and highly uncertain. It is essential that fiscal and monetary policy support are not prematurely withdrawn, as best possible.

How Strong Infrastructure Governance Can End Waste in Public Investment

By Joshua OlorunsaiyePosted on September 5, 2020Posted in AgenciesTagged Advanced Economies, COVID-19, emerging market economies, LIDCs, Low Income Developing Countries, Pandemic, Public infrastructure, Sustainable Development Goals (SDGs)3 Comments

COVID-19 has had a profound impact on people, firms, and economies all over the world. While countries have ramped public lifelines;to individuals and firms they will face enormous challenges to recover from the pandemic, amidst low economic activity and unprecedented levels of debts.Public infrastructure investment will play a key role in the recovery But with resources tight, governments need to spend taxpayer money wisely on the right projects. For this, countries need good infrastructure governance—strong institutions and frameworks to plan, allocate, and implement quality public infrastructure.

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