The situation will only get worse

The situation will only get worse.

The world is blocked today because of Corona. The death march is on the rise. The supply system has collapsed, the wheel of stagnant economy. Water-land-space transport-communication closed. People from one country do not go to another country, nor can they go. It is forbidden to come and go even in the house next door or in the surrounding area. All in all, human life has come to a standstill all over the world due to extreme uncertainty. But this is not the last word.

The world will one day be freed from this situation of corona. Then what will be the course of the global economy? The world-renowned economist hopes that this terrible epidemic will change the world economy forever. Permanent change will also happen in politics. Foreign Policy.com has take .

                 Adam Posen

The epidemic has worsened the four existing conditions in the world economy. Just as many difficult diseases can be cured through surgery in the human body, this situation can be improved by performing major surgeries in the economy as well. But without that step the situation will get worse. The first of these conditions is increasing stagnation, i.e. low productivity growth, private sector investment.

 

Dividends received from and the situation of near depreciation. The longer people don't take risks, the more this reality will intensify. This will happen even if people increase their savings after the epidemic. Because, it will hit the demand and innovation in the long run.

Second, the gap
between rich countries and other countries will widen in terms of their ability
to turn around in times of crisis. Third, the world will become increasingly
dependent on the US dollar, in part because of the shift toward security, and
because of the visible risks to developing economies.

In both the sector
and the commercial sector. It is true that the United States will no longer be
so attractive for investment, but it will still be more attractive than other
parts of the world. This will increase the existing dissatisfaction.
Eventually, economic nationalism will alienate many countries. It will not
achieve full economic self-reliance again, nor will it achieve anything close
to it. But this will increase the first two trends. And in the case of the

third section, the feeling of deprivation will increase.

 

      Adam Posen: President of the Peterson Institute for International Economics