A country’s financial and institutional capacity to implement extensive fiscal spending and lending schemes is also considered a key determinant of its economic resilience The covid-19 pandemic has created a dual crisis: A health shock and an economic crunch.
The two risks, however, are distinct and the severity of one does not determine the severity of the other, a new VoxEU article argues.
Some countries that are experiencing lower levels of morbidity and mortality may suffer very adverse economic consequences while the opposite could occur for those with high mortality rates, Ilan Noy of Victoria University of Wellington and others argue.