Understanding How the Coronavirus Affects the Global Economy: A Guide for Non-Economists

Abstract

The coronavirus is causing considerable damage to the global economy, and the potential damage is continuing to grow. Unlike many other crises, evaluating the economic impact of the coronavirus is extremely challenging, due to the complexity of the ways in which it affects economic activity. This paper explains the main channels that economists think about when attempting to gauge the virus’s economic fallout, and then presents some of the most recent assessments being circulated in the research community. It is written in a manner that is accessible to non-economists, while still making use of the cutting-edge contributions made in the academic literature