CORONAVIRUS, LOCKDOWN, AND ECONOMY

Abstract

Humanity has faced an unprecedented biological threat that collapsed the global economy and engulfed the animal spirits in a severe wave of pessimism and fear. The measures of policy have combined an expansive monetary policy and an extra fiscal expenditure that was not contemplated in the budgetary planning exercise. The recuperation stage is strongly challenging and requires all efforts of economic policy. The future global economic performance relies on the breaking policy postures that can succeed in realigning the path of growth in the long run. In any case, the destruction in the economic net and employment is so hard to restore that we must avoid the risk is to align the economy in a more stagnant path of growth for the future. The concluding part of the paper states that during the pandemic we saw that the way ahead should not be headed by the market mechanism but instead by an openly interventionist economic policy. In this blatantly ominous stage of the economy, serious doubts emerged about the ability of spontaneous supply and demand forces to recover the economic structure left in shambles by this disruptive shock.