Abstract of Coronavirus and the US Economy
I
order to evaluate impact of corona virus on the economy it is significant not
only to emphasis on the epidemiological outline of the virus but also on the
pathways which customers, government and business might answer to it. The
COVID-19 would mainly form economic losses with supply chain, financial market,
demand, household, business investment and international trade as well. In the
outbreak and spread of virus the America has been anticipating the decrease
import from china. In the last of the 2019 reduced imports, exports and
international trade have been observed. As well as the threat of noticeable negative
mandate will shock if the public exaggerates the outburst of corona virus. The
coronavirus will directly shape and alter economic losses through financial
markets, demand, and supply chains, affecting household consumption,
international trade, and business investment. With the spread of coronavirus,
the US economy has also experienced a decrease in demand.
It
has resulted in significant reduction in revenues for businesses because of
overall impact on the economy. Two separate concepts and effects must be
considered. First of all, people are purchasing less services and products as
they fear being exposed to the coronavirus. The officials of united states have
been moving to hold the spread of disease and on the other side federal
government has also been contending with unparalleled and dramatic toll which
the epidemic have on the U.S economy. It has been said that almost 22 million
American residents have been registered for the benefits which has been given
by government to the unemployed families. As well as the recent condition has
been unparalleled and growing faster and it has been utilizing some of the
models which utilize macro-economic fundamentals might miss some of the main
forces which might be too decrease to update the provided frequency. As well as
the abnormal decline has been enhanced the calls for action which has been made
from white house to do something.
Introduction
of Coronavirus and the
US Economy
Coronavirus has been recognised as
an epidemiological threat that causes COVID-19 and other than its harmful
effects on health; it has been determined to have disruptive effects on both
global and national economy as well. All over the world, the coronavirus has
raised significant concerns. For instance, it is expected by the IMF that
international GDP or Gross Domestic Product will fall by three percent in 2020. (Leiva & Gabriel , 2020) Meanwhile, warnings
have been issued by the WTO that the volume of international trade could
decrease up to 32 percent. The US will inevitably be influenced by both the
domestic and international developments emerging from the virus. Furthermore, in order to evaluate impact of corona virus on the economy
it is significant not only to emphasis on the epidemiological outline of the
virus but also on the pathways which customers, government and business might answer
to it.
The
crude oil price had already been affected by a row between OPEC, the group of
oil producers, and Russia. Coronavirus has driven the price down further.
The COVID-19 would
mainly form economic losses with supply chain, financial market, demand,
household, business investment and international trade as well. In this some of the economist has been utilizing the SARS
epidemic to put corona virus outburst in content. In the era of 2003, the
epidemic of SARS has been estimated to have 0.5 percent to 1 percent off on the
growth of china which merely cost the universal economy which is almost 40
billion which has been taken as to be 0.1 percent from the from the general GDP.
The
epidemic of corona virus which has likely be originated from (Baker & Nicholas , 2020)SRAS in china. It has
been diversive in few major ways. Moreover, its confidence was stunned by the
double effect of overall economic announcement and the trade among china and
U.S.A war escalation. The universe looks diversive from the last universal virus
outburst which was appeared in 2003.
Analyzing on which personnel is at
most need for personal protective
equipment ( PPEs) due to they are facing the most critical risk
looking after seriously ill COVID-19 patients have a justified claim to
protection available. There can be multiple ways to ensure protection to
physicians who are at high risk personally due to the reason of an underlying
medical condition. If they are given a task to give care to non-COVID-19
patients (Pwc.com.au, 2020).
Identification of a contemporary “Managing
in a Global Environment” problem to be addressed
The institutions for example are
required to look for multiple ways for increasing the rate of supplies of PPEs
or analyze if PPEs can be re used by adequate sterilizing until new equipment
supplies are available, or need to dig out other ways to ensure the requirement
is full filled (Jayasuriya, 2020).
In
those situations, universal growth has already been going slow and some of the
financial marketing already holds quite decrease interest rates which have been
taken as in the meaning of central banks in almost each of the main country
which hold low ammo which alleviate any strength economic outcome. It has been
put great pressure on government to utilize power of their purse to hostage the
economic fallout from the corona virus. Whereas the outcome from the virus would
disrupt the supply chains and universal demand which can also threaten the economy
of United Nations, (Bartik & Brad , 2020) the recent condition
also develops a lot of uncertainty for long term basis. In the outbreak and
spread of virus the America has been anticipating the decrease import from
china. In the last of the 2019 reduced imports, exports and international trade
have been observed. As well as the threat of noticeable negative mandate will
shock if the public exaggerates the outburst of corona virus.
In the United States,
number of people filing for unemployment hit a record high, signalling an end to a
decade of expansion for one of the world's largest economies
Possibilities
enormous externalities which is associated to epidemics diverse conventional economic
thinking. Most of the medical service providers will normally charge and would
have be highly subsidized and has been delivered for free. In these terms of
reducing limitations to testing and the government should make it clear that
testing would be free and that individual should not fear from hospitalization.
The officials of united states have been moving to hold the spread of disease
and on the other side federal government has also been contending with
unparalleled and dramatic toll which the epidemic have on the U.S economy. It
has been said that almost 22 million American residents have been registered
for the benefits which has been given by government to the unemployed
families. It is obvious that the amount
of interference is quite remarkable.
As it has been known
that corona virus has been spread in all over the world and affects the humans
at great level. As the corona virus is the type of virus which has been
affected on the human’s immune system as well as with the respiratory system
and has been named as COVID-19. The symptoms of virus have been involved the
symptom of pneumonia, cold, cough, sneeze and fever mainly and also the
shortness of breath.
The virus has been
spread with the release of droplets within the air which has been delivered by
the sneeze and cough of the infected individuals. In the current situation the
virus has been declared as pandemic because it affected the universe through
the large population. The virus has been first come in the Wuhan city of china
in the last of 2019 (Health.gov.au, 2019).
COVID-19 spread all
round of Coronavirus and the US Economy
It has been observed
that the virus has been spread in all round the universe and it has also been travelled
in America as well. The virus has been come in the start of the year 2020. It
can also be said that in the response to virus America has been doing
comparatively good. The America holds six thousand five hundred patients in the
middle of April and observed 66 deaths (Retail, 2020). For a country who
holds the population of 25 million person which has been associated with the
economy globally and also have the main urban population and also have great
tourist industry and it has been taken as positive statistics in the great
scheme of pandemic.
Moreover, there are
some of the common features has been presented which makes the America able to
limited the spread of virus. As it has been viewed that the city has been
consecrated with some of the environmental advantages which sanction them to
seal their selves form the world and avoid the latest sources of the entrance
of virus (Mousina, 2020).
Although it has been
observed that corona virus has pulled the public of America back toward the
collective goods of country. It also provides the public toward the greater
sense on domestic purpose. Furthermore, the virus gives the reason to put side
the sensitive and philosophical thoughts despite from the quality information.
. Moreover, there are some of the common features has been presented which
makes the America able to limited the spread of virus (Schwab, 2020).
Purpose Statement of Coronavirus
and the US Economy
In this research, effects of the
coronavirus on the US economy will be discussed and it will be determined what
can be done by the US government for facilitating businesses to recover from
it.
Significance of Issue under study of Coronavirus
and the US Economy
The spread of coronavirus has
impacted the global economy significantly and it is adversely influencing
national economies, including the US economy. It has been determined that the
pandemic is capable of disrupting the international supply of products and
good, making it harder for American organisations to fill orders. In fact, it
is also capable of waylaying workers and employees in the affected areas,
effectively decreasing labour supply and slowing the demand for services and
products of the US. Therefore, it would not be wrong to say that the
coronavirus is capable of wreaking havoc on the US economy. The only way of
preventing is to take effective steps (Karabag, 2020).
Literature Review of
Coronavirus and the US Economy
For assessing
the possible effect of the coronavirus on the US economy, it is critical not
only to consider the coronavirus’s epidemiological profile but also the ways
that governments, businesses, and consumers might respond to it. The coronavirus
will directly shape and alter economic losses through financial markets,
demand, and supply chains, affecting household consumption, international
trade, and business investment.
It will do so through the introduction of high uncertainty and in traditional
supply-and-demand ways.
SARS epidemic has been used by
economists for putting the spread of coronavirus in context. Actually, the SARS
epidemic of 2003 is determined to have eliminated approximately one percent of
China’s growth for the year. In addition to it, it cost about 40 billion
dollars to the global economy. The epidemic of coronavirus, which is originated
in China, seems to differ in a few ways. In 2003, the economy of China seemed
to account for 3 percent of the international GDP. However, at the moment, it
seems to command 16.3 percent. If the pandemic has similar effects on China,
its effects on the international growth will be even worse. Furthermore, growth
of China is seemingly weaker than it was in 2003. Its confidence had been
weakened by the double effects of trade-war and general deceleration of
economy. The economic fallout due to the pandemic could rattle the economy of
China further and even decrease international growth, significantly influencing
the US economy (Dolbneva, 2020).
In comparison with SARS, the spread
of coronavirus is quicker. China, for its part, responded quickly to the
outbreak of coronavirus than it responded to SARS. These measures have seemed
to create short-term economic pains on the side of supply and demand. Outside
the boundaries of China, the spread of coronavirus has influenced international
supply chains significantly as other governments have begun to take serious
steps for slowing the spread of virus. It is predicted by the Harvard Business
Review that the pandemic is capable of lasting till 2021 and it has already
forced thousands of businesses to temporarily shut their manufacturing and
assembling plants down in Europe and the US. Again, this will disrupt and cause
issues for the international supply chains along with the demands for services
and goods in the affected economies. Actually, these disruptions seem to make
it tougher for organisations in the US to bring their products to consumers and
these organisations will decrease exports from the United States to other
countries in the coming months.
In addition to it, companies and
households in the US are deeper in debt now than they were in SARS. For
instance, in America, non-financial corporate debt of organisations is
approximately 10 trillion dollars. In 2003, this debt was only 4.8 trillion
dollars (Atkeson, 2020).
Disruptions to supply chains are one
of the most significant and clearest impacts of the coronavirus. Looking
closely at international supply chains, significant disruptions have already
been caused, with manufacturers in the US forced to decrease manufacturing and
production in their plants. These disruptions have spread further. Economic
activity has been reduced because workers are unable to work. This widening of
disruptions has caused the US firms to alternate products from different
nations for the missing Chinese inputs. Due to these disruptions, US
organisations are not able to finish their production and therefore, they
cannot bring their products to consumers. It results in reduced growth and
activity of economy.
With the spread of coronavirus, the
US economy has also experienced a decrease in demand. It has resulted in
significant reduction in revenues for businesses because of overall impact on
the economy. Two separate concepts and effects must be considered. First of
all, people are purchasing less services and products as they fear being
exposed to the coronavirus. For example, in the US, they are less willing to
eat outdoors and travel. Due to it, hotels and air travel industry have both
experienced significant declines in their sales and revenues. There is also a
lessened demand for beverage and food. Secondly, when organisations are forced
to shut down, workers are more likely to receive less money than they get, and
in some cases, they will receive no salary at all. Consequently, they spend
less and it contributes to the already lessened demand. It is important to note
that since air travels have been restricted, Chinese tourists are unable to
visit the US. Due to it, the US has experienced a loss of 10.3 billion dollars.
US exporters are finding it difficult than ever to sell their wares, which
again contributes to the loss in number of jobs and growth (Dey & Loewenstein, 2020).
As much as
experts and economist think about taking risks as the driver for an economy, it
only seems to work when the risks are known. However, uncertainties and unknown
risks are capable of having a more paralyzing impact on the economy. The
current domestic economy of the US is already exhibiting high uncertainty. Conflicting
regulation policies and political polarisation have led organisations thinking
twice before they expand or invest. This uncertainty is capable of
affecting market participants, households, and businesses. In addition to it,
interest rates in the US have recently decreased to historic lows due to the
rising economic uncertainty.
The Treasury
yield has decreased to 1.50 percent from 1.69 percent. In March, it has become
even lower than 1. This dramatic decrease demands that the Congress and White
House must do something. The yield rate clearly reflects the instability and
uncertainty caused by the pandemic. Meanwhile, prices on bonds seem to reflect
the likelihood of a recession. Short-term rates of interest are higher than the
long-term ones and it is the opposite of what usually occurs in normal times. Typically,
such inversions are an indication that financial markets are worrying about
long-term outlooks for growth and economy. Financial markets are seeing an
increasing risk of economic recession (Nicola, et al., 2020).
In
this article it has been mentioned by Gormsen, Joachim (2020), that some of the
economist thinks about taking risk as the main element of the economy and it
has only been works if the risk is in increased form. Despite from this unwanted
risks or dissimilarities will have the huge and more paralyzing effect.
Moreover, the recent situation of America’s public economy along with their strong
labour market and consuming level but concerningly with decreased expansion and
investment which exhibits the high sense of dissimilarity. In this regard the
political polarization and some of the contradictory policies on regulation which
will move toward the organization to think twofold while (Gormsen, Joachim, &
Koijen, 2020)enhancing
and investing. Both the worldly and U.S economy index which has been developed
by some of the economist. Moreover, the effect of corona virus has a common thing
which is linked with the financial crisis of 2008 mainly with unknown magnitude.
There were some of the uncertainties has been presented which is related with
the scale of the virus and some of the contagion rate, morality rates and risk
of events and many other things. The normal online deception and swirl of conspiracy
theories, there were some of the questions has been raised up which is related
with the perfection of the health statistics which has been come from China.
Some
of the David, Maria (2020), suggested that in 2019 there had been some of the
worries which is related with the impact of US-China trade war on the global
economy. One of these accounts, in this IMF has been predicted the normal
growth of GDP which is almost 3.4 percent. In this regard the Air transportation
company said that they were lost almost 13 billion US dollars from the outbreak
of corona virus. As well as the IMF reduced the forecast of growth for the
economy as the outburst of COVID-19 and their projection has been taken within
serious doubt. (Altig, Joes, & Nicholas
, 2020)Moreover,
the tourism industry of unites states was highly affected with the epidemic as
all of the travelling activities has been suspended such as cancellation of
hotel, cancellation of booking flights and cancellation of national and
international events for unknown time and in this regard the huge loss have to
be bear by economy of country. Moreover, the flow of goods which has been done
through universal supply chain merely decreased and significant orders has been
cancelled by main factories within the country.
Maria,
Zaid, (2020), recommended that as it has been observed that more than 2 million
individuals have been infected from COVD-19 in the world. The officials of
united states have been moving to hold the spread of disease and on the other
side federal government has also been contending with unparalleled and dramatic
toll which the epidemic have on the U.S economy. It has been said that almost 22
million American residents have been registered for the benefits which has been
given by government to the unemployed families. It
is obvious that the amount of interference is quite remarkable.
Moreover, the quantity of federal reserve’s (Nicola, Zaid , & Catrin , The socio-economic
implications of the coronavirus and covid-19 pandemic:
A review, 2020) intervention has been still presented increased than ECB and their
promptness to be behave within the market and it has now become more greater comparison
with the ECB. There were some of the supply shock has also been presented. In
the previous days every thing has been running smoothly but when the virus has
come and become intense the officials of the country has been decided shut down
the economy. It has been done because the governments disheartened and then forbidden
the individuals to do work.
According
to Arun, (2020), it has been mentioned that COVID-19 has been impacted on
business, communities and firms internationally and it also effect the financial
market and worldwide economy. As well as the uncoordinated governmental replies
and lockdowns which has been move toward the commotion in the supply by some of
the Chinese factories, whereas in the quarantine and in the limitations of
lockdown has been reduced the production of supply chain as well as some of the
policies which is related with demand and consumption has also lessen their
services and products mainly. (Ozili & Arun,
2020)As corona
virus has been advancing to affect the rest of the world, but now it has been
viewed that china would started to recover rapidly the other’s and has been
empowering their trade transferring power toward U.S.A. moreover, in the
America’s stock market the index which has been measured that the performance
of stock of more than 500 greatest companies of American stock exchange has
been fell dramatically until the government secured the aid regarding to corona
virus. Furthermore, there is a great decline has been viewed in the American
stock market has been aggravated an instable atmosphere with the complex liquidity
levels.
In
this article it has been stated by Nuno (2020), that the outbreak of virus has
been caused due to the pandemic of respiratory infection and for this vaccines
and medical treatment is unavailable. The outburst can also cause main concerns
which is relate with some of the economic consequences and as in the form of
household they have been needed to stay home to reduce the spread of virus.
Moreover, the impact has been pausing the economy which might not hold supply
chain and financial consistency of various organizations and also in the financial
sectors. (Fernandes, 2020)
As well as the
recent condition has been unparalleled and growing faster and it has been utilizing
some of the models which utilize macro-economic fundamentals might miss some of
the main forces which might be too decrease to update the provided frequency. As
well as the abnormal decline has been enhanced the calls for action which has
been made from white house to do something. Whereas,
price in bonds with the variety of maturities reflect an expand probability of downturn.
Financial markets now observe developed threat of a recession. The corona virus
puts the spotlight on the policy makers to hostage the hazard of the virus in fast
and positive and efficient way.
In
this article it has been mentioned by Viktor, Utkovski (2020), that the main
risk which is related with the economy id the health crisis which has been escorted
by financial crisis. As well as the instant negative impact of COVID-19 on GDP
has likely to be far more considerable and had been subprime crisis of 2008. As
well as the length of time that the corona crisis suspends the economy would be
evaluated by their financial effects. The crisis of 2008 has been produced numerous
years of (Stojkoski, Zoran , &
Petar , 2020)lower
development because of great financial commotion which has been attained as in
the form that banks has been suffered loss and cut back loaning mainly the
driver expansion as a consequence.
Moreover,
it is simple to imagine the ways that the corona disasters would have a same
financial effect. As well as customers and business would be default on loans. As
well as financial markets have been expecting the default rate of great corporation
to enhance to. In the American banks they have been exploited than they were in
2008. The Federal Reserve has already walked in to offer supplementary fluidity
to financial markets, but it might have to do more to keep recognition obtainable
to organizations and persons.
According to Mehrbakhsh, (2020), it has been recommended
that national and international replies has been required and America has the
power and experts to manage the both situation at one time. In the situation of
crisis U.S.A have been established that it will be act conclusively at home. As
well as these both replies had the significant then as they are now and
pandemic but also for the great threats
such as climate change and some of the antibiotic’s resistance and cyber-attacks.
In this regard American could not be save their selves in isolation. Emphasis innermost
at the expense of exterior engagements estranges others and destabilises the
political good would require to find combine solutions to our general problems.
(Ahani & Mehrbakhsh , 2020)domestic and universal
required to give hand to hand. The officials of united states have been moving
to hold the spread of disease and on the other side federal government has also
been contending with unparalleled and dramatic toll which the epidemic have on
the U.S economy. It has been said that almost 22 million American residents
have been registered for the benefits which has been given by government to the
unemployed families. It is obvious that
the amount of interference is quite remarkable.
According to the author, this paper
is discussing important information about the economic effects of coronavirus
outbreak. This paper is also discussing its impact on the US economy. In the
start, there is some information about the Global recession. Moreover, there is
some comprehensive information is given by the author about its impact on the
economy of world and USA.
Moreover,
its impact to the local and global market is also analysed. For that case,
there is complete information about the estimated GDP values of the several
countries. Furthermore, this paper is also discussing the economic impact of
this disease across different industries. It can be noted that due to market
shutdown. There are different kind of problems arise. Every government wanted
to stop the spread of this disease so many countries moves towards market shut
down. Due to this, the GDP value of the important markets goes down and economy
of many countries was affected (Nuno Fernandes, 2020).
In this paper, authors talked about
the coronavirus perceptions and economic anxiety in different parts of the
world. It can be noted that due to this problem, many countries are affected
badly in terms of economic problems. These coronavirus crisis are enhancing
long term economic downturn. For that case, the author had used Google search
activity and also survey data for analysing the impact of such economic anxiety
in the USA. For checking the impact of this disease on the USA economy. The
author had conducted the survey and analysed the response of the respondents. It
can be noted that this information is providing comprehensive information on
the role of public education. It is showing that it is playing a central role
by managing the negative impact of the economy and increase in anxiety.
Moreover, the author had shown some graphs and tables for analysing the
economic impact on the USA.
It
is also showing that there is rapid increase in the economy anxiety, after and
during the initial global spreading of this virus. Another thing is that author
had also documented the rise in economy anxieties through survey and google
searches data properly. The author had shown some graphs related to the
economic anxiety in USA (Fetzer & Lukas Hensel, 2020).
This
paper discusses the Global economy infected by coronavirus. This paper, starts
with the history of this virus and then gave proper information about is impact
on the global market. The outburst can also cause main concerns which is relate
with some of the economic consequences and as in the form of household they
have been needed to stay home to reduce the spread of virus The author also
provide us complete information about the response of USA market just after the
outbreak of this virus. It is showing that due to mechanical models of
recession the risks are increasing dynamically.
Moreover, the author had also define the three
main categories of recession just after the coronavirus. The first one is real
recession, second one is policy recession and third one deals with financial
crisis around the world. Furthermore, author had also suggested the recovery
path for the global recession after this disease (Carlsson-Szlezak & Martin Reeves, 2020).
Conclusion of Coronavirus and the US Economy
The coronavirus pandemic seems to
put spotlight on government and policymakers for countering its risks in an
effective, constructive, and quick manner for helping businesses in recovering
and begin operating to contribute to the growth of economy. It is imperative
for them to remain calm and take necessary steps for ensuring that disruptions
to individual businesses, workers, and sectors that will affect the economy due
to its interconnectedness are minimised while not adversely influencing efforts
for dealing with the pandemic. In this it has been concluded that the COVID-19
would mainly form economic losses with supply chain, financial market, demand,
household, business investment and international trade as well. In this some of
the economist have been utilizing the SARS epidemic to put corona virus
outburst in content. In the era of 2003, the epidemic of SARS has been
estimated to have 0.5 percent to 1 percent off on the growth of china which
merely cost the universal economy which is almost 40 billion which has been
taken as to be 0.1 percent from the from the general GDP.
As
much as experts and economist think about taking risks as the driver for an
economy, it only seems to work when the risks are known. However, uncertainties
and unknown risks are capable of having a more paralyzing impact on the
economy. The current domestic economy of the US is already exhibiting high
uncertainty. Conflicting regulation policies and political polarisation have
led organisations thinking twice before they expand or invest. As corona virus
has been advancing to affect the rest of the world, but now it has been viewed
that china would started to recover rapidly the other’s and has been empowering
their trade transferring power toward U.S.A. moreover, in the America’s stock
market the index which has been measured that the performance of stock of more
than 500 greatest companies of American stock exchange has been fell
dramatically until the government secured the aid regarding to corona virus.
For
assessing the possible effect of the coronavirus on the US economy, it is
critical not only to consider the coronavirus’s epidemiological profile but
also the ways that governments, businesses, and consumers might respond to it.
The coronavirus will directly shape and alter economic losses through financial
markets, demand, and supply chains, affecting household consumption,
international trade, and business investment. It will do so through the
introduction of high uncertainty and in traditional supply-and-demand ways. .
It has been said that almost 22 million American residents have been registered
for the benefits which has been given by government to the unemployed
families. It is obvious that the amount
of interference is quite remarkable. Moreover, the quantity of federal reserve’s
intervention has been still presented increased than ECB and their promptness
to be behave within the market and it has now become more greater comparison
with the ECB.
Recommendations of
Coronavirus and the US Economy
There
are some recommendations that must be considered for countering the impact of
pandemic on the US economy:
·
First of all, it is
important for the Trump administration to find one voice and stop contributing
to the confusion. Additionally, administration should stop targeting the
programmes that are required by Americans such as SNAP, public health
insurance, and paid leave. Decisive and clear support should be articulated for
containing the outbreak and minimising harms while ensuring investments in
emergency preparedness and public health.
·
Regulators and the
federal government must monitor financial markets for preparing for credit
events and market stress.
·
Instead of further
proposing cuts in tax, businesses should be provided with small loans and the
opportunity to build their presence virtually. It will help in ensuring that
only corporations are not being benefitted from the cuts in tax and provide
businesses with a breakthrough that they need to continue existing in the
market and contributing to the recovery of economy.
·
Lastly, the US should
ensure that its supply chain is not affected adversely by targeting nations in
which it has had low involvement in the past years such as Pakistan and India.
Trading with these nations will help it in ensuring a sustainable supply chain.
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Coronavirus and the US Economy
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