The Risk of a Second Wave of Post-Crisis Frailty in the World Economy

Abstract

This article assesses the scope for economic recovery following the COVID-19 shock. A theoretical review looks at the interplay between the forces of aggregate demand and income generation, on the one hand, and distribution and finance, on the other hand. The role of the public sector is shown to be pivotal. But the injections/leakages framework proposed in the empirical analysis uncovers a disappointing configuration of global demand and policies. The public sector as a driver of demand, distribution and financial stability has been virtually removed. Instead, it was replaced by finance-led schemes that have caused stepwise decelerations in economic growth and increases in government financial constraints, crisis after crisis. On this basis, the prospects for a sustained global recovery after the pandemic look unmistakably grim, barring a radical reorientation of policies.

Strategi Kebijakan Pemulihan Ekonomi Berdasarkan Perspektif Critical Realism Pada Disruption Di Indonesia

“…Analisa peneliti melihat bahwa pasca gelombang kedua Covid-19 merupakan momentum kebangkitan ekonomi, negara yang lebih cepat pulih dari krisis ekonomi adalah negara yang siap untuk memenangkan persaingan pasar. Suksesi menghadapi krisis global ditandai dengan dimulainya praktik bisnis secara normal dan kebijakan laissez-faire (Barbosa-Filho & Izurieta, 2020).…”

Integración financiera subordinada y efectos de la crisis pandémica en Colombia.

“…En especial, se destaca que los patrones de comportamiento del tipo de cambio de monedas periféricas, usualmente utilizadas en operaciones especulativas y de carry trade, implican en periodos sostenidos de apreciación, seguidos por depreciaciones repentinas, lo que tiene un efecto perjudicial. En conjunto, estos elementos contribuyen al proceso de desindustrialización prematura 6 de las economías latinoamericanas (Rodrik, 2016).…”