Knowns and Unknowns in the Covid-triggered Global Economic Crisis C. P. Chandrasekhar

The coronavirus or Covid-19 pandemic has put the world’s economic decision-makers and their advisors in no man’s land. The challenge they must address is visible and obvious, but the means to do so effectively are almost an unknown.

It is clear that in the first quarter of 2020 the economies of most of the world’s nations would have contracted, some to a significant degree. Whether that contraction will continue and, if it does, for how long, is anybody’s guess. Speculative forays into estimating the degree of contraction in the gross domestic product (GDP) and where collapsing stock markets would settle are mere games that can yield the right numbers only by accident.

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(This article was originally published in The India Forum on April 3, 2020)