• Editors from VoxEU talk about the new eBook on the economics of the coronavirus written by leading academics and policymakers. And the prognosis not good.
• One key difference in this pandemic is that COVID-19 is hitting the largest economies whereas earlier pandemics hit either one big or a few small economies. The 10 hardest hit countries from coronavirus are almost identical to 10 largest countries in the world leaving vastly larger economic consequences.
• Manufacturing is facing a triple hit. First channel is the supply affect from factory closures, (unlike services you can’t run factories remotely). This is amplified by the integrated nature of global value chains which creates contagion in the supply chain. Asia’s dominance in producing intermediate goods makes this worse. Finally, the demand shock also hit manufacturing as consumer goods purchases are postponed.
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