In the Spring of 2020 the Coronavirus led to the quarantine of 800 million people in China. As the virus spread to other countries, economies were forced to close in order to limit the spread of the virus and protect populations.
As economies implemented social distancing policies and closed down, unemployment skyrocketed and GDP plummeted. The economic impact was faster and more severe then the Great Financial Crisis (GFC); some even compared conditions to the Great Depression of the 1930’s.
In April 2020 PIMCO sponsored a virtual forum with Dr. Ben Bernanke. Bernanke is a senior advisor for PIMCO and a policy advisor at Brookings. Bernanke was chairman of the Federal Reserve during the GFC and is an expert on the Great Depression. His insights during the current crisis are valuable on many levels.
Bernanke was asked how is this crisis different from the GFC?Continue reading “What is the Long-Term Economic Impact of nCov19?”