Questions tagged [covid-19-crisis]

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7
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3answers
540 views

What would be the economic effect of widespread instances of individuals paying off consumer debt?

In light of the economic impact of the recent shutdowns in response to COVID-19, the Australian Government is considering bringing forward planned tax cuts, that were do to be implemented gradually ...
1
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1answer
18 views

Is there a per country estimation of the GDP drop due to COVID?

I've been looking around for some per-country estimation of the expected GDP drop due to the COVID pandemic. I've found this answer in this site but it only mentions a few countries. I understand not ...
2
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1answer
51 views

Are there some examples of theoretical models that discuss pandemics?

I am looking for some papers/references that showcase theoretical economic models that incorporate pandemics. Most work seem to be purely empirical. Does anyone know of some papers that try to model ...
0
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0answers
23 views

Effects on Early International Travel Ban and Economy

Can't find articles regarding on this. Had the country set up an early international travel ban to avoid this Covid-19 pandemic, can that country survive thru local businesses after 4-6 months or more ...
0
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1answer
32 views

What are the economic after effects of a 10% pay cut to all state employees? [closed]

I am attempting to ask this question as impartially as possible, setting aside the political and social ramifications. Given: the shut down that began on March 2020, as a response to a contagious ...
0
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1answer
34 views

Why is it important to open up the economy before a cure for COVID-19? [closed]

This is a multi-part question: Why are we leaving quarantine so soon? If it's to increase economic activity, why is it important to keep it so high? At what point is economic activity worth more than ...
0
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2answers
57 views

Why not create money to assist the post-COVID-19 economy?

In an imaginary country, a horrible computer virus infected some banks. Within a week, it caused the wealth of a large portion of the population (say, 50%) to drop significantly. For some, it cut 80% ...
36
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10answers
8k views

Why do we need to “get the economy moving again”?

Sorry I have no background in economics but as a computer programmer, I specialise in building models out of simple math and logic, so I hope we can speak the same language without having to get into ...
0
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0answers
13 views

Helicopter Money in the time of Covid-19

In this voxEU article by Jordi Galí, he says the following: In the current context, the central bank could credit the government's account (or governments, in the case of the ECB) for the amount of ...
1
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0answers
36 views

Are there any estimates for what percentage of the jobs lost this spring are “permanent” at least for the rest of the year?

In a "view from the helicopter" video by The Economist on the aftereffects of Covid-19, one of the editors says that it's very unlikely we'll see a return to normal this year e.g. in the restaurant ...
1
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2answers
79 views

Why does the Market Risk Premium increase in times of crisis?

My question is a bit more specific as it is indeed well known that investors expect higher returns in times of higher risks/volatility. However, isn't it counterintuitive to expect the market to ...
0
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0answers
18 views

COVID-19 Policy Analysis

Let's assume I have a dataset consisting of fiscal/monetary policy responses and non-pharmaceutical interventions to the COVID-19 crisis in tens of countries. How would I go about analyzing their ...
0
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1answer
31 views

Does price cap in emergency situation (COVID-19) reduce the availability of a good? Does unregulated market increase it instead?

I was discussing with one of my friend about Italy price cap on surgical mask to control speculation. He says price cap does not allow industries to invest more to increase the production that would ...
2
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1answer
45 views

UK Government Coronavirus Job Retention Scheme Funding

During the Covid-19 outbreak the UK government is offering to pay upto 80% or a max of £2500 per month to prevent employers laying off workers; Furloughed workers If you and your employer both ...
2
votes
2answers
54 views

Why is the Australian Government financing the stimulus via debt rather than the RBA?

The Australian Government is engaging in quantitative easing for the first time. The RBA is creating money that is being used to buy bonds on the secondary market so that there is enough liquidity for ...
2
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2answers
66 views

The government is issuing massive debt for coronavirus relief - why aren't interest rates rising?

As I understand it, the US Treasury Department issues bonds to pay for the government's coronavirus rescue spending. I might have thought that such a large input to the fixed income market on the ...
0
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0answers
24 views

Soft Question: Econometric model recommendation - covid situation and supermarket sales

I am interested in modelling the impact of the current covid pandemic on supermarket sales (in a specific country in Europe) as part of my bachelor's thesis (next year), however, I am having a hard ...
0
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0answers
24 views

How can government mitigate the long-term effects of current shut downs?

I’m not well versed in economics by any stretch of the imagination. But I am confused with certain measures taken thus far by the government. There is currently a temporary shutdown of vast sectors ...
-1
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2answers
57 views

Economics of Justifying N95 masks and Mass COVID testing [closed]

The US has shutdown a significant fraction of its economy because of COVID-19. Eventually we will all migrate in a pre-COVID direction. Obviously, too fast would be a medical disaster, too slow ...
8
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2answers
105 views

Statistical models which represent the impact of strict measures vs no strict measures (and less economic impact), enforced due to Covid-19

I have been wondering whether there are statistical models like this one, (which estimated the deaths caused by the virus itself) that estimate the deaths caused by the economic turndown. There is an ...
0
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1answer
34 views

What are the economic arguments against (a) variolation (analogue) as a solution for Covid-19?

It has been suggested in some parts of the (usually right-wing) press that a solution to Covid-19, especially in economics terms, is to expose the young to the virus sooner, e.g.: Perednia [...] ...
-3
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1answer
58 views

Why doesn't the Federal government just let the stock market crash?

In a normal financial crisis the government tries to maintain the stock market prices to prevent a spike in unemployment as companies collapse and run layoffs. But given that we're in the midst on a ...
0
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1answer
22 views

Why could boasting oil during the current drop in oil demand be good for Saudi Arabia?

According to Bloomberg : Saudi Arabia is one of the few countries in the world that can boast crude production that’s profitable in the current environment. But the kingdom’s economy is at risk, ...
1
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1answer
51 views

What are the effects of a 12 month sudden stop/shutdown of a capitalistic economy like the US? [closed]

Consider a scenario where consumer confidence remains low until a virus such as COVID-19 is contained. In this scenario, containment is defined as being achieved once a vaccine is manufactured and ...
10
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3answers
457 views

Economics Online Seminars

As education moves to the internet, so are research seminars. Some of these seminars are regular and others appear to be temporary due to the covid-19 and the lockdown. Here are some examples from ...
-1
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1answer
125 views

How likely is a total economic collapse due to the potential coronavirus impact? [closed]

Most signs show that lockdown could easily stretch through the summer. A freeze in consumer spending would cause multiple industries to fail causing a ripple effect. To be specific, if lockdown lasts ...
1
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0answers
47 views

How will Coronavirus affect Social Security solvency?

The Coronavirus (known by younger millennials as the "Boomer Plague") is estimated to have a cost of life between 100,000 - 240,000 Americans. According to the CDC approximately 80% of deaths ...
0
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1answer
32 views

Stimulus (Rescue) Package [duplicate]

With regard to the recent 2 trillion dollar coronavirus package, is the money just being printed or borrowed? A gentleman from the tax payer union claims the taxpayer will eventually be on the hook.
1
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2answers
74 views

Should unemployment caused by the government closing non-essential businesses during quarantine be counted as structrural unemployment?

I have following definition of structural unemployment (taken from "Modern principles of economics" by Tyler Cowen and Alex Tabarrok): Long-term unemployment caused by shocks or permanent features ...
2
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1answer
43 views

Does the sudden spike in the US jobless claim pose systemic risk to the US unemployment insurance system?

There has been an unprecedented short-term increase in US unemployment owing to the Covid-19 crisis. Initial jobless claims soared to a seasonally adjusted 3.28 million in the week ended March 21, ...
0
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3answers
175 views

How much more can the US Federal Reserve spend on COVID-19?

On Mar. 26 2020, the Federal Reserve’s Balance Sheet Tops $5 Trillion for First Time. Is the Fed's spending capped at some maximum? I studied in Canada and am ignorant of U.S. I'm asking about just ...
0
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0answers
45 views

What are the exact sources of CARES Act economic transfers? [duplicate]

The bill Coronavirus Aid, Relief, and Economic Security Act provides "2 trillion". (There is also H.R.6201 - Families First Coronavirus Response Act providing aid.) From which sources will the ...
0
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2answers
59 views

Why does global suspension of economic activity result in catastrophic loss/debt?

Covid-19 has forced a suspension of at least 50% of financial transactions and business activities. Materially, not much has been lost: consumables have been spared, equipment is dormant, ...
0
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1answer
37 views

Won’t paying wages to temporarily unemployed due to Coronavirus result in inflation?

UK government promises to pay 80% of wages for people unemployed due to coronavirus. I am not economist, so I am probably missing something, but shouldn’t paying wages to unemployed due to coronavirus ...
2
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2answers
134 views

How is the Corona $2 trilion stimulus package going to be financed?

Perhaps this is a simple question but as a non-US citizen I don't understand how the US government is going to finance the $2 trillion stimulus package to combat the economic damage due to the Corona ...
2
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0answers
43 views

Federal Reserve Leveraging of COVID-19 Fund

Reading an article in The New York Times about the COVID-19 stimulus bill, I stumbled on this detail the Fed can take a limited amount of funds and deploy them widely: The central bank only needs ...
14
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3answers
761 views

The Economics of Coronavirus

People are concerned about the economic impacts of the virus. How severe will the economic downturn be? Will the coronavirus cause a global recession worse than the 2008 crisis? I'm not looking here ...
1
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1answer
61 views

Who is working right now? (coronoavirus)

Is there any research, graphs, or any formal (non-opinion) information on where I can get information on what people are working right now? I want to know, who is still collecting a paycheck. I am a ...
5
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0answers
74 views

Will US Treasury and Federal Reserve's expansionary policies in 2020 crowd out?

Scott Minerd, CIO of Guggenheim Investments contends What could go wrong with my outlook? We are already in uncharted territory and another black swan might emerge in the midst of a very fragile ...