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Homework answers / question archive / The COVID-19 pandemic has caused an unprecedented human and health crisis
The COVID-19 pandemic has caused an unprecedented human and health crisis. The measures necessary to contain the virus have triggered an economic downturn. At this point, there is great uncertainty about its severity and length. Do you think that this time the impact of the COVID-19 crisis on real economies will be stronger than on financial sectors?
Yes, I think that this crisis is going to to be more impactful than the last financial crisis because it is not just a financial crisis but it is related to crashing of the global economy to the deepest possible level because Central banks have been the main culprit of providing the stimulus at the time of crisis and they have not been able to sustain the severity of economic downturn because there is huge unemployment and they are trying to determine the effect of virus by upward movement of stock markets which can never be sustainable because there is the real economy suffering at a greater extent and there is a high probability of severe economic recession that can not just impact the financial wealth of the nation but it will also impact the lives of the people to a great extent and it is utterly foolish on the part of government to counter health crisis by providing financial and fiscal stimulus, instead they should be trying to contain the virus through health stimulus and vaccines rather than going for financial stimulus because they cannot contain the severity of this economic crisis for long period of time because it will mean that the currencies will have to devalued and it will be leading to a greater web of financial crisis that will impact the life of the people and employment of the people and generations to come.