If the right macro-economic and sound money policies are implemented, the impacts of the virus can be removed rapidly.
The world is in a very critical period. This period will have impacts on health, economic, social and political areas. To see these, we need to understand “what did the pandemic bring?” and “how will it be taken under control?” The coronavirus will especially have a deep impact on the economy. Now, the number of people infected by the virus is more than one million, and maybe it will reach up to two million. This picture will also have impact on the health system and the productivity of people. In fact, the right quarantine applications to fight against the virus have caused the economy to slow down. For example, in the USA, 50% of the country’s economy has completely stopped.
On the other hand, demand is considerably decreasing due to uncertainty. The outbreak is putting a lot of pressure on the business world. Companies may go bankrupt in every recession, but this is generally taken under control. Pandemic diseases can have more adverse effects of course and it has a significant impact on the supply chain. If the right macro-economic and sound money policies are implemented, the impacts of the coronavirus can be removed rapidly.
The Professor of Economics at Massachusetts Institute of Technology Daron Acemoğlu