The impact of the virus will definitely go beyond the death tolls and infection rate creating a significant and long-lasting impact on the global economy.
In any economy that comprises several markets with numerous transactions, there are four major driving forces i.e. productivity growth, short term debt cycle, long term debt cycle, and politics. Productivity growth is a long term process led by hard work and innovation. The debt cycles are the result of an influx of credit into the economy. In this regard, short-term debt cycle lasts for about 10 years whereas long-term debt cycle happens once every 50-75 years leading to a change in the financial and monetary system. Politics means how countries deal with each other and their people regarding various internal and external issues. These forces on their own create several varieties of economic movements and subsequent trends creating one whole stable economic system. However, the recent COVID-19 outbreak, with its widespread impact on the economy, led to disruptions on these driving forces of the economy.
Many economists had predicted the…
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Little Nothings 