COVID- 19 and Finance
The economic shock associated with the COVID-19 pandemic is likely to be significantly larger than anything seen since the financial crisis of 2008/09. The spread of COVID-19 has already had a high human cost, and, with public health systems struggling to cope, these costs will continue to grow. The policies put in place by governments to slow the transmission of COVID-19 have led, in many countries, to a massive demand and supply shock. This has led to significant trade disruptions, drops in commodity prices, and the tightening of financial conditions in many countries. These effects have already led to large increases in unemployment and underemployment rates and will continue to threaten the survival of many firms worldwide (Loayza and Pennings, 2020).